The objectives of this report is to present the studies of the proper analysis conducted for Maxis company and recommend the key strategies that the company should embark to be able to remain competitive. This record is also to permit us, Management of Strategy students to use the fundamental ideas and skills of strategic management to a real-life scenario in order to get a better understanding. This functional approach of learning would allow us to get better understanding compared to theoretical way of learning. Other than that, this assignment gave us the opportunity to display competency in both written and dental communication skills in formal business configurations. Lastly, it helps us to gain more knowledge in create and integrate business knowledge, decision making, interpersonal, authority and entrepreneurial skills in proposing strategies and evaluating them. This task is an extremely great chance for us to know more about outside the house world which is not in books.
Scope
This article shall cover the functions of Maxis company in Malaysia. On this report, all the significant information necessary for business and rival evaluation are included. It also contains the review of analysing an organisation, its industry, its closest opponents (immediate, impending, unseen) before devising several approaches for it to follow, selecting the most likely strategy and outlining recommendations for its execution in a formal business report which will also involve a formal business display at completion of the tasks.
Limitations
The limitations of the report will be the short length of time for the project to be completed. The brief duration of this assignment did not permit us the time to perform an interview with Maxis for much more accurate information. However, we find information based on valid resources through online. Some information may be outdated with the existing company situation so our understanding of the current situation would not be as correct as first-hand information.
2. 0 History to the organization
Maxis Berhad, using its consolidated subsidiaries is the leading mobile marketing communications company in Malaysia with over 11. 4 million users starting from 30 June 2009. It is established in 12 months 1993 and has been publicly listed in season 2002. The company started its procedure in the year 1995. "012", "017" and "0142" dialing prefix is generally discovered as Maxis dialing prefix. The business mobile services are provided over different Global System for Mobile Communications (GSM) such as 900 & 1800 MHz GSM strap. By July 2005, the 2100 MHz Common Mobile Telecommunications System (UMTS) music group was utilized by Maxis.
Other than that, Maxis is also the pioneered in the Malaysian market in delivering ground breaking mobile products and services. In July 2005, Maxis was the first ever to unveiling 3G services in Malaysia. In Sept 2006, Maxis became one of the world's first to utilize High-Speed Downlink Packet Gain access to (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 and still increasing now. The 3G services of Maxis permit the users to take pleasure from the internet access throughout Malaysia. Maxis was also the first operator to bring in and sell the Blackberry and Apple iPhone smart devices to Malaysia. Maxis was also the first ever to unveiled close to field marketing communications (NFC) service in Malaysia.
Maxis vision is to bring advanced communications services to improve its customers' lives and businesses, in a way that is simple and personalised, by successfully and creatively harnessing industry leading technology, and delivering a make of service experience that is reliable and enchanting.
3. 0 Situation Analysis
Situation evaluation is a organized collection and analysis of history and present inexpensive, political, interpersonal, and technical data. It is aimed at the id of internal and external pushes that may affect the organization's performance and selection of strategies, and the analysis of the organization's current and future strengths, weaknesses, opportunities, and risks.
3. 1 General environment analysis
General environment examination includes factors such as demographic, economic, political/legal, sociocultural, scientific, global and physical environment that generally have an effect on everyone within an industry or market in a similar manner.
3. 1. 1 Demographic
Maxis spent RM1. 24 billion to update and modernize their 3G network in season 2009 to be able to raise the human population coverage from 50% to 57%, which presents the single greatest annual deployment in Maxis' history.
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 being able to access the internet from their mobiles.
The statistics exhibited that more than 50% of the Malaysia's human population is under age 25 years old, a sizeable number of whom go into the 'cellphone owning' category every year. It is because the youth sections are now the greatest and speediest growing section.
Maxis is a leading local content player with 39. 2% of non-voice income as part of mobile revenue and 7. 1 million productive mobile internet surfers, more than 50% of its customer basic. As a result, Maxis became the most attractive in high-growth, low-penetration markets and diversifying the marketplace bottom as well.
http://i. pictr. com/rjw9vg6zsl. jpg
http://t0. gstatic. com/images?q=tbn:ANd9GcRWQfeG7nn0fvz1I_YW6VQ53_r0iiRNNeY66EGgX0euoeEMUbQ-TA
3. 1. 2 Economic
In 12 months 2010, Malaysia's current economic climate was expected to grow. This increased outlook is likely to stimulate consumer and business spending for telecommunication services. Malaysia's determine to achieve a broadband household penetration rate of 50% by 2010 for Maxis' progress in the immediate future.
The Malaysian telecommunications industry remains adaptable even although challenging global economic climate. In '09 2009, the entire expansion of the mobile industry was reasonable and the mobile subscriber penetration crossed 100%.
The basic salary of the Maxis employees are fixed throughout contract. It can be reviewed into consideration the individual performance, the inflation price index, and information from self-employed options on the rates of salary for similar positions in other equivalent companies.
Maxis is time for list on Bursa Malaysia in November or Dec and its own draft prospectus is submitted on the Securities Payment website. Maxis was considered private in 2007 and de-listed from Bursa the same calendar year. In a challenging global economical climate in calendar year 2009, Maxis sent another strong time.
http://biz. thestar. com. my/archives/2009/11/20/business/p1-maxischt. JPG
3. 1. 3 Politics/ Legal
The government had chosen Telekom Malaysia Bhd (TM) and Maxis Broadband Shd Bhd (Maxis) at 14th December 2010 to sign a landmark of a decade arrangement for TM to attempt the High Speed Broadband (HSBB) services to Maxis. As we realize that, this task was able to offer more quality broadband services.
Malaysia government restricts the level of playing field for foreign players in the industry. The country's major telecom players, Maxis and Celcom won the bid as well as subsidiary of Time Dot Com and MiTV Corp for the 3G permit. However, DiGi was not given a 3G permit as they have a high international ownership.
The Maxis website articles are managed or managed for the purposes by Maxis or its content suppliers and are protected by copyright, trademarks and other laws and regulations. The compilation of most content on the website and the service are the exclusive property of Maxis or its content supplier and covered by copyright.
Maxis also offers a stringent condition to avoid broadband user abuse, that is why Maxis specify that every customer must be at least 18 years of age to be a Maxis customer. Sub-users under this age group must have authorization from the account owner to gain access to the Maxis Broadband service. Before using the Maxis Broadband service, the person must obtain agreement from the authorized customer. Customers also must not try to gain unauthorized usage of any computer system.
3. 1. 4 Sociocultural
Maxis provides suggestions for the way in which in which all employees should perform themselves at the work place, while executing their daily tasks for Maxis so when a Maxis worker to be able to provide better services to customers.
Key factors of this progress included the option of more complex smartphone models in Malaysia and the strong development of sociable networking. Maxis was the first ever to provide popular iPhone to Malaysians, obtaining annual focuses on, and it prolonged to improve the deal of BlackBerry devices.
Maxis has Business Value Plus Programs for people. Business Value Plus Plans have many ways to assist in saving money when calling. Data Blueprints exclusive to iPad for iPad users to take pleasure from online entertainment with a much lower price. Maxis prepaid Hotlink turn out with a fresh plan which is much cheaper than other opponents.
Maxis focused on minimizing carbon footprint to look after the environment. Consequently, Maxis lovers with Malaysia Air travel Systems to reduce the impact to the environment, as well as an in-house recycling advertising campaign. At their workplace, efforts are taken to reduce wastage and removal, reuse existing resources and recycle fully exhausted materials.
3. 1. 5 Technological
Malaysia is defined to get a HSBB internet support allowing fast internet access by utilizing dietary fiber optic technology to transfer data. It'll allow network operators to be a part of and compete with one another in this new network. TM got already commissioned foreign major sellers to lead the task. RM11. 3bil national HSBB project is a partnership between TM and our federal to extend next-generation, high-speed broadband infrastructure and services for the country.
As we know that, HSBB offers bandwidth at network speeds of 10Mbps and above, through fixed line only, when compared with regular broadband services that are sent at network speeds which range from 384Kbps to less than 10Mbps through predetermined line which also known as DSL and wireless mode, such as 3G, HSDPA, WiMAX and Wi-fi.
Maxis commercially launched the first-in-the-world contactless built-in mobile payment services that utilizes Near Field Communication technology, with lovers Nokia, Visa, Maybank and Touch 'n Head to pay for buys and travel charges using mobile phones in yr 9 April 2009.
3. 1. 6 Global
Maxis brings excellent coverage in nearly every corner of the united states and their services are quickly expanding. In addition to voice, GPRS and Border 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 applied to the Foreign Investment Advertising Mother board (FIPB) to increase its direct and indirect shareholding in Aircel from 26 percent to 73. 9 percent.
In calendar year 2009, Maxis and the Western Union Company announce to launch of mobile money transfer service In Malaysia. It allows 11 million Maxis clients and 1. 9 million foreign workers in Malaysia to send cross-border remittances directly from their mobile phones.
3. 1. 7 Physical environment
The issues that Maxis concern works well and reliable services, operating hours, and user-friendly facilities to be able to increase the values the business can offer to its customers.
Maxis's main task today is adapting well to an easy changing and frequently hostile environment of telecommunication industry. Things change extremely fast until the company struggles to manage the rapid tempo. As a result Maxis shifts at the top management team in order to take on the changing business environment and global competition.
As we all know that, the changes in Maxis is because of trying to cope with moving market environment and also to move to the modified telecommunication technology, 3G.
With the increasing demand for this to attain and support corporate objectives, IT team of Maxis must take care of with a continuous barrage of changes such as changes in product requirements, technology, development operations, and deployment conditions. As a result Maxis deliver newer technology assets and applications with their current customers and catch the attention of new customer bottom through proactive management of change.
3. 2 Industry conditions (Porter's Five Causes Analysis)
Five pushes which would impact an organization's behavior on the market. Understanding the type of these pushes provides organizations the required insights to permit those to formulate the appropriate strategies to be successful in their market (Thurlby, 1998).
3. 2. 1 Risk of new entrants (high entrance barriers)
High capital investment for competition entrance into telecommunication industry. Companies in this industry incurred high set costs and spend rather massive amount capital on network equipment and maintain development. Besides, technologies 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. Due to high goals and standards that include the Maxis brand it isn't without reason that customers will be more strenuous of Maxis. As a result, Maxis always feel that their business on being the customer's first choice.
Capital necessity usually build-up a company which is the high capacity to compete in the industry. However, telecommunication is a higher competitive industry to be able to gain large market share. Therefore, new entrants have to ensure they have ample financial learning resource to support in this industry.
3. 2. 2 Bargaining electricity of suppliers (high bargaining power of suppliers)
Telecommunications industry in Malaysia would depend on imports in most of its network components as the majority of the network equipment can't be sourced locally.
Maxis' systems utilize standard equipment which is offered from a limited volume of suppliers. Most of the GSM equipment for Maxis' mobile network operations is purchased from Motorola, Siemens and Trisilco Folec, and Maxis retains close working relationships using its key network equipment suppliers.
Since the suppliers of Maxis are limited, hence Maxis' suppliers are powerful when the merchandise they provide are differentiated or it has generated up by turning cost. When there is certainly occasional need by the purchasers such as high investment in submarine fiber optic wire, and replace the copper cable television and old dish dishes that might provide reliable broadband connection.
Maxis have high competitive environment causes existing entrants need to invest in high modernization technologies to enable the corporation to support and remain competitive in this industry. Therefore, it's important for providers to ensure the grade of the technology equipment. This makes the company group are more powerful.
3. 2. 3 Bargaining ability of buyers (low bargaining vitality of clients)
In the era of globalization, move forward of technology could improve the bargaining electricity of buyer, high available of information make it easier for buyer to evaluate resources of materials about telecommunication. There are several alternatives product such as fax, email, and internet which enhance the bargaining electricity of buyer to the mobile company.
For as soon as, high level of competition between the major telecommunication companies that is available in market brings about low turning cost for the buyer to change their mobile company. Customers are highly price very sensitive and easy to change 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 contributes to awareness of the potential buyers industry. Besides this, the clients have high switching cost in this industry. As a result, the industry is more profitable when the clients have low bargaining electric power which means the buyers cannot affect the setting of prices on the market.
Maxis has arrived with many Business Value Plus Plans for business people. It has so many solutions to assist in saving money when speaking on the phone. Maxis wants to make certain that their customers can enjoy using Maxis services with a lower price than other opponents.
3. 2. 4 Risk of substitute product (high threats of alternative)
Maxis have many substitutes in the mobile industry. For example, from traditional way which are using the letter, set home line phone, fax and email to communication with other folks till currently mostly everyone using broadband Internet services, which permit faster and always-on connection to the worldwide web, offer more appealing growth probable.
Furthermore, the strain on the suprisingly low cost to make use of the phone calling via internet or connect via online messenger got threatened the mobile industry. For instance, nowadays many people use MSN, Facebook, and Skype to communicate rather than use their mobile.
Threat of alternative product will directly influence the success of Maxis. Substitute product is the merchandise or services in other establishments that is different from the prevailing product or services but acts the similar needs. Hence, risk 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 substitute products such as letter or e-mail are unable to fulfill or completely replace the mobile services.
3. 2. 5 Intensity of rivalry among competitors (low strength of rivalry)
Telecommunication industry includes only several mobile providers such as TM, Maxis, Digi, Celcom, Umobile etc because of the entry restriction that imposed by the government. Success of the industry also damaged greatly by the strength of competition among existing competition in the industry.
Therefore, rivalry among competitors telecommunication industry in Malaysia is oligopoly framework nowadays and the amount of competition in this particular industry is presumed that to be low one. Maxis have two main competition, they are simply Digi and Celcom.
Cannot be rejected that, Maxis lead the telecommunication industry. They mainly compete on differentiate product and services on how to improve their features and utilizing innovation to the customers.
In addition, Maxis will definitely contend on the decision rates, deal price and so forth with other two main challengers. Hence, Maxis make an effort to gain competitive benefit through low call rate and price such as Youth Club. As we all know that Maxis, Digi and Celcom spent a lump sum of the money on advertising to market their products also to catch the attention of more customers choose them.
Summary of environmental scanning
Basically, environmental scanning is approximately the careful examining of a firm's inside and exterior environment for spotting early symptoms of opportunities and threats that may effect an organisation's decision making process and its current and future ideas. In the case of Maxis, they can pass on and even penetrate into new market or other countries. Too much dependence on Malaysia as their main market is not enough to be able to compete with its close rivals. Thus, Maxis can in some way execute its weakness into opportunities that might bring them into a fresh future plan. Strategies such as changes to interconnect rates and ways to beat the threats from its opponents are soon to be applied.
In the sense of customer support, lots of risks such as worms, Trojans, spyware and so forth would harm the special protection under the law of customers as a Maxis customer. Thus, Maxis requires certain software and devices to be able to protect their customers from being tracked or harmed by unnecessary parties. Experts who is able to trace hackers or protect customers from being hacked are encouraged to stay in the management team in order to help conquer this threat.
Although Maxis is the first telecommunication company to release iPhone, the recent kick off of Digi's iPhone got posed further pressure on Maxis. To be able to retain and get more customers, Maxis would need to execute an improved offer with affordable rates because of its users. Customer services must be advanced to cater most of its customers' needs. Also, they need to keep changing their features or functions of its technical devices so as to lure more people in purchasing their products. It really is normal to see some hostile broadband campaigns by wireless challengers. Therefore, Maxis must stick out as being more important than the rest to make an impression on this challenging game. In addition to promotions, some other marketing strategies like cooperation with big companies in managing an event, sponsorship from administration organizations and what not can be carried out in order to gain good image from the 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 fail.
3. 3. 1 Capital Market Stakeholders
Major suppliers of capital (e. g: lenders)
Shareholders
Individuals, Lender/Finance Companies, Investment Trusts/Foundations/Charities, Other types of companies, Federal Agencies/Institutions/Nominees
In the company (Directors' Involvement in Stocks) (Maxis Berhad Annual Report 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
-Ghassan Hasbani
-Augustus Ralph Marshall
-Chan Chee Beng
-Sandip Das
30 Largest Shareholders (Maxis Berhad Annual Survey 2009, 2009)
1. Maxis Marketing communications Berhad
2. Kumpulan Wang Persaraan (Diperbadankan)
3. Employees Provident Account Board
4. Amanahraya Trustees Berhad
Skim Amanah Saham Bumiputera
5. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For JPMorgan Run after Bank, National Connection (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 Finance Management Berhad
9. Amanahraya Trustees Berhad
Amanah Saham Didik
10. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For J. P. Morgan Bank or investment company Luxembourg S. A
11. HSBC Nominees (Asing) Sdn Bhd
Exempt AN For The Bank Of New York Mellon (Mellon Acct)
12. Malaysia Nominees (Tempatan) Sendirian Berhad
Great Eastern Life Confidence (Malaysia) Berhad (Par 1)
13. Permodalan Nasional Berhad
14. HSBC Nominees (Asing) Sdn Bhd
BBH And Co Boston For Vanguard Emerging Markets 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 Connection (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 American International Assurance 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 Property Mgmt Malaysia For Malaysia For Employees Provident Fund
23. HSBC Nominees (Asing) Sdn Bhd
TNTC For Mondrian Emerging Marketplaces Equity Finance L. P
24. Cartaban Nominees (Asing) Sdn Bhd
State Neighborhood 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
Primary customers
All users which subscribe Maxis line (either prepaid, postpaid or 3G) or choose the products such as Mobile Internet, Iphone, Blackberry, Android os, Cellular and Wired broadband from Maxis.
Primary customers for Maxis IP VPN (IP VPN, 2010)
Customer's Name
Van Wijnen Groep N. V.
Solvay Group
Industry
Construction
Pharmaceuticals, chemicals, plastics
Business Challenge
Develop employee and customer satisfaction by establishing an ERP system and boosting information flows through an superior private network.
Facilitate business restructuring and support invention.
Network Solution
Versatel's IP VPN service is based on a Cisco MPLS network to give a data solution that is monitored end to get rid of and provides excellent features for assisting ERP.
BT Infonet's IP VPN service is helped bring over an MPLS network built end to get rid of with Cisco equipment and has a Cisco Powered Network designation.
The service sustains Solvay's global ERP and intranet advancements.
The supervised network offers a flexible and protected base for new services, such as tone of voice and video over IP.
Suppliers (Authorised Distributors, 2010)
ZyXEL Communications Company (M) Sdn Bhd
ZyXEL, founded in 1989 in Hsinchu, Taiwan, is a pioneer manufacturer and provider of DSL Customer Idea Equipment. ZyXEL is currently world's major DSL router seller and Europe's second major router supplier. In addition to its impressive products and solutions, ZyXEL has strong connections with worldwide COE sellers such as Alcatel, Lucent and Nokia; ILECs such as Verizon and Chunghwa Telecom; international companies such as France Telecom, Deutsche Telekom, and Telefonica; ISPs such as EarthLink, Worldonline, Hinet, Seednet, Maxis and many more.
Working tightly with these and other partners, ZyXEL is focused on helping businesses succeed in the flourishing broadband market by providing them with value-added service and remarkable performance solutions at the most competitive price.
Advanced Broadband Communications Sdn Bhd
Advanced Broadband Marketing communications Sdn Bhd is a newly formed company included in Apr 2001. The company is a private jv, high-tech founded company between Advanced Broadband Communication Sdn Bhd and Prestige Sierra Sdn Bhd. The business is 100% locally managed to provide total telecommunication alternatives and services for both typical & IP Systems. The new technology that bridges normal Circuit - Move communication to Internet Process (IP) communication. All IP-based alternatives and services which will be developed and deployed by the business are targeted at business and personal users whatsoever levels.
Host communions
Unions
3. 3. 3 Organizational Stakeholders
Employees
All employees who work under Maxis
Managers (Malaysia Collateral Research PP, 2010)
Name
Positions
Sandip Das
Chief Exec Officer
Jean Pascal Emmanuel
Dominique Van Overbeke
Chief Functioning Office
Rossana Annizah binti
Ahmad Rashid
Chief Financial Officer
Mark Person Dioguardi
Head of Network and
Technology
Stephen John Mead
General Counsel
Mohamed Fitri bin Abdullah
Head of Business & Carrier Business
Matthew Charles Willsher
Chief Marketing Officer
Azmi bin Ujang
Head of Human
Resources
Chow Chee Yan
Head of Internal Audit
Chua Seok Theng
Chief Information Officer
Non-managers
3. 4 SWOT evaluation predicated on stakeholder groups
3. 4. 1 Capital Market Stakeholders
Strengths
Strong and competitive local player.
Association with MEASAT Satellite System.
Weaknesses
Depends too much on Malaysia as their main market.
Opportunities
Potential for triple play if tie-up with content provider/broadcaster, e. g. Astro.
Association with Microsoft.
Broadband market in Malaysia keeps growing.
Wireless market in Asia Pacific has experienced a rapid growth.
Threats
Modifications to interconnect rates may pressure Maxis' profits as the company is a world wide web receiver of cell phone calls.
Regulatory construction.
Mobile number portability in Malaysia.
Intense competition from other telecommunication companies.
3. 4. 2 Product Market Stakeholders
Strengths
Premium branding and customer care persist to draw in and retain subscribers. This is further followed by long-term iPhone strategies.
Much broader 3G/3. 5G coverage than Digi and similar coverage as Celcom.
Largest subscriber bottom in Malaysia with c. 39% talk about.
Largest postpaid subscriber bottom part of c. 43% is vital to future market pattern towards more postpaid readers.
Its transparency and capability to deliver performance.
Good loyalty programs as well as perhaps the best family plan in Malaysia inside our view.
Weaknesses
Maxis does not offer triple play of mobile, broadband and pay Television set.
Opportunities
32% of the Malaysian society is under 15 yrs. old, which really is a main target for broadband services over the next 15 years.
New cellular devices, e. g. iPhone ("4G") and lately launched iPad drive demand for broadband services.
Under-served broadband human population provides great development opportunities.
Selective organization opportunities as Maxis build backhaul capacity mainly for cordless broadband, thus it can aim for some lucrative organization businesses by using the same backhaul network.
Threats
Viruses and worms pass on over Bluetooth, MMS messages or infected storage area cards.
Trojans pretend to be useful applications. They can devastate data or stop functionality.
Spyware gathers information without you knowing. It could intercept e-mails and Text, permit hackers to hear cell phone calls, and even track you.
3. 4. 3 Organisational Stakeholders
Strengths
All employees and professionals are fully equipped with knowledge and good tactical management.
Weaknesses
Growing business business may entail more CAPEX, and Maxis can only selectively cultivate its venture business.
Opportunities
Organization's personnel have the opportunity to collaborate with big companies such as Astro and Microsoft.
Threats
Digi's launch of the iPhone the other day could put further pressure on Maxis.
Aggressive broadband campaigns by wireless challengers, including WiMAX players.
3. 4. 4 Rival analysis
Competitor analysis has two main activities, 1) obtaining information about important rivals, and 2) using that information to predict competitor behavior. The purpose of competitor analysis is to understand:
with which rivals to be competitive,
competitors' strategies and designed actions,
how competitors might react to a firm's activities,
how to impact competitor habit to the firm's own benefits.
Major competitors
Digi
Celcom
Immediate competition
-The immediate competition for Maxis is Digi.
Comparison: Digi vs Maxis iPhone
Sunday, April 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 closing Maxis' monopoly on the iPhone in Malaysia for almost a year. Since then there's been a lot of talks on the sites and forums as to which plan offers better value to consumers like us.
Impending competition
-The impending competitor for Maxis is Celcom.
Feedback from customers
Maxis Broadband? Or Celcom Broadband?
http://edwardkhoo. com/maxis-broadband-or-celcom-broadband/
I am presently using Maxis Broadband myself, however it has come to my attention that Celcom Broadband also provide similar service, but with a better performance. Maxis Broadband is sufficient for my use, but I read a lot of men and women complaint about it.
3. 5 Brief summary of situation analysis
Strengths
Effective and effective services, operating time, and user-friendly facilities to provide the best customer satisfaction.
Maxis has different strategies for different kinds of customers to ensure that customers can appreciate using Maxis services with a lower price than other opponents.
Maxis provides suggestions for the manner in which all employees should carry out themselves at the work place so that a Maxis worker in order to provide better customer services.
Pioneer of new services and technologies. Maxis was the first ever to generate the Apple iPhone and the first to start the 3G network.
Maxis ensure good commercial interpersonal responsibility. Maxis is at a strategic collaboration with Malaysia Flight Systems in jobs to reduce our impact to the environment, as well as an interior recycling plan.
Weaknesses
Strict condition to avoid broadband user abuse. Nowadays, people are receiving more tech-savvy so Maxis would lose many customers below era 18.
Maxis will not offer triple play of mobile, broadband and pay Tv set.
Depends too much on Malaysia as their main market.
Opportunities
Maxis companions with Telekom Malaysia Bhd. to enhance the quality and offer High Speed Broadband services to customers.
Broadband users are growing in Malaysia. This provides a good chance of Maxis especially its partnership with Telekom Malaysia Bhd. to provide broadband broadband services.
Potential for triple play of mobile, broadband and pay Television if tie-up with content supplier/broadcaster such as Astro.
Threats
Customers are highly price very sensitive and easy to change brand. It also means that customer won't stay with Maxis if other brand could provide lower price and better or similar value.
Rapid changing and frequently hostile environment of telecommunication networking industry. Maxis must manage a continuous barrage of changes such as changes in product requirements, technology, development operations, and deployment surroundings to be able to sustain on the market.
Intense competition from other telecommunication companies such as Digi and Celcom.
4. 0 Strategic options for the organisation
To compete in telecommunication industry, Maxis apply different strategic to keep up the footing as leading in telecommunication industry, it apply different ways of compete with it competitor like Digi and Celcom.
Maxis apply partnership strategy in their business. The explanation for Maxis alliances with different associates is to provide various mobile services to customers. Using a partnership, Maxis can provide better services to customers and increase profit. To boost the competitive edge, Maxis spouse with ZyXEL Marketing communications Company (M) Sdn Bhd which is the pioneer manufacturer and suppliers of DSL Customer Premise Equipment. ZyXEL have a good marriage with worldwide COE suppliers. 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 arrangement 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 delicate -launch fixed broadband and Internet process television (IPTV). On the other hand, this arrangement will broaden the range 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 organizations offers its goods or services beyond your local market. To expand business, Maxis acquisition stake in Aircel, India. Aircel is fifth greatest GSM mobile provider in India and rated as the most effective growing Small and Medium Enterprises (SME) in India. Besides, Aircel is the first to pioneer WiMax and since the first operator in India. They can be several known reasons for Maxis entry into international strategy. Firstly, is to increase the market size of business; Maxis already is the leading mobile communication in Malaysia. Thus, it is important for Maxis to enter new market. Second, is to boost the profits on return (ROI) to benefits shareholders. Third, the positioning advantages in India which consider is low cost markets.
Maxis also followed differentiation in its business. Maxis provide various rate ideas and package to satisfy the necessity of different level. For postpaid plan, Maxis provide 8 kind of rate plan and charges, customers can pick the plan predicated on their needs. Maxis likewise have Maxis One Club to rewards postpaid customers. Maxis One Membership is program which delivers exclusive services and provides rewards to postpaid customers. The huge benefits include enjoy the priority services when you call to Maxis customer services. Besides, regular membership can also enjoy free telephone calls from Maxis to Maxis on your birthday. Membership also can benefit from the sales previews, concert or other provide by Maxis. A couple of 9 reasons used by Maxis to draw in more customers move to Maxis. In addition, it can consider as differentiation weighed against other competitors. First, Maxis have largest mobile community and over 10 million people enjoy with the cheaper telephone 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 samples, when customers going abroad to other country like Singapore, China, Indonesia; Maxis will auto roaming. It provide customers keep in touch with good friend and family although at abroad. Fourth, Maxis is the first choice in 3G and HSDPA services, so it permits their customers to reach anyone everywhere. Fifth, Maxis offer the best family plan and enables their customers reveal the same call rate and talk to your family. 6th, Maxis hold the most value -for-money prepaid plan to benefits their customers. Next, Maxis provide superior customer services with their customers. Besides, Maxis also is the first choice in data service. Ninth, Maxis have solid brand with good reputation and are the winner of internationally regarded awards.
Besides, Maxis provides differentiation in mobile arrange for personal use, Maxis provide various business value packages to customers. There are offer free cell phone calls and SMS within your company. In addition, it offer converse time sharing with company. So business customers can enjoy the low rate provide by Maxis. Maxis also provide the business enterprise customers a bundle call Maxis M2M. Maxis M2M will increase your business with new wireless machine-to-machine services provide by Maxis. The huge benefits for Maxis M2M is can connect millions of belongings and provides Software Programming Interface (APIs) to expanding custom request. The features provide by Maxis M2M have considerable coverage. The GSM network of Maxis enable customers remote control devices are always open to linked. Business customers can pick the value data plan to suit the specific needs on its business. The tailor-made plan will help to match the customers' need.
Next strategy followed by Maxis in its business is cost control. Companies apply cost management strategy is offer standardized product to customers. The attribute of cost management offers products and services to customers in low cost than other competition and thus create customer value. To put into action cost reduction strategy running a business, cost management should control the cost in products and services such as development cost and over head cost.
Maxis is the price head in mobile broadband market. Maxis provide superior performance in their broadband services to customers. The network coverage by Maxis is considerable than their strong competition like Digi. Maxis develop their network coverage in rural areas. In addition, it provides more secure online services to customers. The other great things about Maxis broadband will be the plans are affordable for customers. Customers can starting on their utilization to find the suitable package. Maxis also provide customer services with a day. If customers confronted any problem using their broadband interconnection, they can call services center. Besides, if you are a postpaid customer of Maxis, you will get the special rebates in regular monthly fees. Maxis provide three types broadband services to customers; the cordless broadband, wired broadband and broadband internet. For wireless broadband, Maxis offer a monthly fee as low as RM48 per month and with free modem. Besides, customers can choose the cellular broadband package bundle with laptop. This package carries a free modem and 4 calendar months Maxis broadband registration. Customers can make the obligations options with in advance repayment or installment. For wired broadband, customers can experience faster, easier and stable connection without hassle. Maxis wired Broadband provides higher rates of speed, steadiness and always connection for customers. Besides, wired broadband also provide single line access via existing telephone line and this bundle is affordable for customers. Alternatively, Maxis also offer Maxis high speed Internet for customers. Using the latest Fiber to the house (FTTH), Maxis customer can enjoy electricity high speed Internet. It provides faster speed when online at home and office and also brings customers in unrestricted entertainment. Customers also can enjoy faster swiftness when download music and movie.
Maxis also apply marketing strategy in business. The marketing strategy used by Maxis is provides training with their employees to increase their performance. To provides superior services, Maxis held campaign with their employees to increase the quality performance and so raise the customer value. Besides, Maxis also execute in interpersonal responsibility. Maxis is responsible in securing the environment and make an effort to reduced the wastage and disposal in their workplace.
5. 0 Key selection criteria
Strategy Used by Maxis
Activities / Tactics
Key selection/ criteria
Partnership strategy
Partnership with Telekom Malaysia to use TM's broadband broadband network.
Partnership with ZyXel Marketing communications Company (M) Sdn Bhd
Enhance quality on broadband services. Customers can experience faster and firm when online.
Create technology advancement to broaden the range of offerings and enhance functions to capture more customers.
International strategy
Acquisition on Aircel which is fifth major GSM mobile services professional in India.
The acquisition offers maxis entry the world most attractive high progress and low penetration market.
The populace is keep increasing.
Aircel is fastest growing on SME in India, so the acquisitions can increase the shareholder benefit.
Differentiation
Diversification of products and services.
Provide different type of rate plan and deal to fulfill different customers requirement based on specific needs.
Cost leadership
Broadband services.
Offer more choice and deals on broadband services.
Include cellular broadband, wired broadband and broadband internet.
Marketing strategy
Customer service.
Social responsibility.
Provide training to employees to increase quality services.
Separate customer services centre in personal and business. Thus, employees can target more on customers.
Securing environment for future children.
6. 0 Recommendation
Key questions
Option / Hypothesis
Decision criteria
Pros
Cons/ Risk
How does Maxis stay on the top of telecommunication industry in Malaysia?
Partner with other company to gain competitive advantages.
Offers the least expensive plan coherent to the service provided.
Fulfill customer satisfaction and maintain customer devotion.
Strong penetration to new focus on sections through effective marketing method.
Maxis partner with other company such as ZyXEL Marketing communications Corp. (M) Sdn. Bhd. and Advanced Broadband Communications Sdn. Bhd.
Maxis is able to provide their customers with better communication services and better broadband services.
Maxis have the chance of being takeover by these 2 partners.
Maxis will be too reliant on their lovers.
Provides quality services
Maintain customer for using Maxis as their phone company.
Maxis might not able to cover the price tag on the assistance provided since the plan is cheaper.
Effective responses system applied.
Customer's problem can be solve immediately while gratify them for subscribe Maxis.
Feedback system might face technical problem in the machine.
Approaching new aim for segments to gain competitive advantages.
Increase Maxis's customer network and sales.
Failure of marketing method will be a throw away of money used.
Key questions
Option / Hypothesis
Decision criteria
Pros
Cons/ Risk
How technology affects Maxis in telecommunication industry?
Follow the newest trends in technology.
Wide wireless coverage.
Partner with technology company.
Security system-secure customer information.
Become the first supplier in Malaysia.
Customer can buy their desire phone at the very first hand.
Customers have their own preferences which are difficult to follow. They could not prefer the new products.
Maxis cordless coverage reaches almost the complete Malaysia.
Customer will be more loyal to Maxis since they are able to provide wide wireless coverage.
The cost for cellular maintenance will increase while customer request for cheaper charges.
Maxis end up being the first dealer to market iPhone, android phone and etc. in Malaysia.
Maxis will be able to get the first hands profit before any company does.
Maxis will be too dependent on Technology Company. When there are no services, there will not have any development in sales.
Insecure in data system will lead to leakage of customer information.
Customer won't be concerned about the leakage with their information to outsiders.
Hackers still able to access to the data system. This causes customer to loss confident in Maxis.
Key questions
Option / Hypothesis
Decision criteria
Pros
Cons/ Risk
What are the requirements that Maxis needed to be able to compete with other telecommunication company outside Malaysia?
Maintain good relations with international companies which have the ability to supply quality software and services.
Offers cheaper plan in comparison to other international company.
Localize the operations team.
Good technology system maintenance.
Maxis partner with other company such as ZyXEL 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. This is credited to Malaysia's partnering might not in a position to localize their product to match the other contry.
Maxis have the risk to be takeover by these 2 partners.
Maxis will be too reliant on their partners.
Provides quality services
Gain external country market will improve the sales as well as the brand of Maxis at international level.
Maxis might not in a position to cover the price tag on the services provided since this reaches the international level and the chargers are cheaper.
Maxis have the ability to operate well in Malaysia.
Customer will feel more comfortable and may not be offended by Maxis worker. This will raise the customer loyalty and registration too.
Employee will are having issues to learn the culture of specific country.
Maxis having the problem of mistaken demand their customer a big amount of telephone bills.
Customer will not be trouble for paying charges if there is no issue with the charges. If not, they need to complain to Maxis which will squander their time.
Geographically and complex error might not be able to solve it as quickly as possible since it is quite an inescapable problem.
