BSM3114 MANAGEMENT OF STRATEGY

Trimester 1, 2016/2017

Strategy analysis & formulation business report

(Maxis Berhad)
Submission date: 30 September 2016
Lecturer: Miss Hani Suhaila Binti Ramli
Prepared by:
Student ID Student Name
1121117658 YAP LI WED
1121117657 WONG JOE YE
1121117552 ONG XIAN LI
1132701293 LAU WEI MIN
1141123764 NUR AISYAH BINTI ZAINAL ABINDI

Declaration by group leader

I hereby declare that all group members names are correctly included in the above
section. I hold a copy of this assignment which I can produce if the original is lost or
damaged. I certify that no part of this assignment has been copied from any other
students work or from any other source except where due acknowledgement is made in
the assignment.

Group leaders signature : _____________________________

Group leaders name : _____________________________

Group leaders student ID : _____________________________

Date :_____________________________

1
 Table of Contents
1.0 Introduction..................................................................................................... 1
1.1 Authorization................................................................................................ 1
1.2 Objective..................................................................................................... 1
1.3 Scope......................................................................................................... 1
1.4 Limitation of the report................................................................................... 1
2.0 Background to the organization............................................................................ 1
3.0 Situation Analysis............................................................................................. 2
3.1 General Environment...................................................................................... 2
3.1.1 Demographic.................................................................................... 2
3.1.2 Economic.......................................................................................... 3
3.1.3 Sociocultural..................................................................................... 4
3.1.4 Technological.................................................................................... 4
3.1.5 Political/ legal............................................................................................ 5
3.1.6 Global............................................................................................... 6
3.1.7 Physical.................................................................................................... 6
3.2 Industry Condition (Portal Five Forces)..........................................................7
3.2.1 Threat of New Entrant...................................................................7
3.2.2 Bargaining Power of Supplier......................................................10
3.2.3 Bargaining Power of Buyer..........................................................11
3.2.4 Threat of Substitute Product........................................................12
3.2.5 Rivalry among Competitors.........................................................12
3.2.6 Conclusion for Portal Five Forces.................................................13
3.2.7 Summary of Situation Analysis....................................................14
3.3 SWOT Analysis.......................................................................................... 14
3.3.1 Strengths........................................................................................ 15
3.3.2 Weaknesses.................................................................................... 15
3.3.3 Opportunities.................................................................................. 16
3.3.4 Threat............................................................................................. 18
3.4 Value chain analysis..................................................................................... 18
3.4.1 Inbound logistic...............................................................................19
3.4.2 Operation........................................................................................ 20

2
 3.4.3 Outbound logistic............................................................................20
3.4.4 Marketing and Sales........................................................................21
3.4.5 Services.......................................................................................... 21
4.0 Strategy Option.............................................................................................. 21
4.1 Market development..................................................................................... 21
4.2 Product diversification..................................................................................22
4.3 Strategy alliance.......................................................................................... 23
5.0 Key selection criteria....................................................................................... 24
5.1 Product diversification..................................................................................24
5.2 Strategy Alliance......................................................................................... 26
5.3 Market development..................................................................................... 28
6.0 Recommendation............................................................................................ 29
7.0 Conclusion.................................................................................................... 30
8.0 References..................................................................................................... iii
9.0 Appendix........................................................................................................ v

3
1.0 Introduction

1.1 Authorization
This report evaluates the situation analysis that could result from company management
and implementation of the strategy. This report is conducted as a group project in
BSM3114 Management of Strategy.

1.2 Objective
The objective of this report is to conduct a strategy analysis and formulation business
report according the analysis.

1.3 Scope
This report including discussion of environmental scanning, analyze the strengths and
weaknesses of Maxis Sdn Bhd as well as comparing Maxis S/Bs competitiveness to that
of its competitors. Apart from that, strategy recommendations are required to make based
on the situation analysis conducted.

1.4 Limitation of the report

The limitation of this report is difficult to obtain latest information from internet.

2.0 Background to the organization

Maxis Sdn Bhd is one of the major leading communications service provider in Malaysia,
and it was founded on 1993. The company started its operation in the year 1995. In 2002,
Maxis acquired TimeCel, a rival mobile service provider, from TimedotCom Berhad.
Prior to the purchase, Maxis offered prefix number beginning with 012, and TimeCel
017. Afterthat, "012", "017" "014-2" and "011-2" dialing prefix is normally identified as
Maxis dialing prefix. Maxis telecommunication services are provided over different
Global System for Mobile Communications (GSM) such as 900 & 1800 MHz GSM band.
As of July 2005, the 2100 MHz Universal Mobile Telecommunications System (UMTS)
band was used by Maxis.
 Besides that, in July 2005, Maxis Berhad was first Telecommunication Company
in Malaysia launched the 3G services. In September 2006, Maxis became one of the
world's first to use High-Speed Downlink Packet Access (HSDPA), a high-speed
enhanced version of its 3G network, to provide wireless broadband services. Maxis were
also the first to unveil near field communications (NFC) service in Malaysia.

Currently, it has over 12.25 million subscribers in Malaysia. Maxis focus its
service on enabling individuals, families and businesses to connecting each other. They
provide variety of telecommunication service by letting customers enjoy a superior
Internet experience, make voice calls and text, and immerse themselves in an ever
expanding universe of connected applications on the most advanced cellular network,
encompassing 3G and 4G LTE technologies.

Maxis berhad vision is to achieve excellence performance in their business and

services. They work hard to obtain leadership position in the market.

3.0 Situation Analysis

3.1 General Environment

3.1.1 Demographic
Demographic can be one of the factors that influence business performance.
Demographic mainly discussed about characteristic of the people. Firstly, one of the
demographic factors that influence the market is the population increase in Malaysia
areas. Maxis can gain opportunities from this environment change. The increases of
population create opportunities to business in Malaysia. It is also create opportunities for
Maxis. It is because increase population will also increase demand of the appearance.
Obviously, when residents in Malaysia increase significant, there are more people will
demand for the communication network. So that Maxis have big potential to increase
their target market in the circumstance. Also, Maxis invested RM1.24 billion to upgrade
and modernize their 3G network in year 2009 in order to increase the population
coverage from 50% to 57%, which represents the single largest yearly deployment in
Maxis' history. Therefore, Maxis have more opportunity to maintain the network
smoothness accordingly.

Demographic trend in tourism sector also a factors that will influence company.
According to tourism Malaysia, Malaysia has total 25.7 million arrivals and receipts 69.1
billion in year 2015. The current trend of tourist arrival has brings a significant market
potential. It is a significant number and the potential market is huge. Therefore, they
should focus on international tourism promotion and to maintain the target group for
international tourist arrivals

The third demographic factors that will influence company performance are age
structure and gender. According to the statistic showed that more than 50% population of
Malaysia ere less than 25 years old. A consort phase for them to own a phone in their age
category. It is because the young-generation segments are growing very speedy. These
issues also create opportunities to Maxis to increase their sales by target their customer.
For example publicize their packaged to customer which is 20-30 years olds to increase
their exposure rate to people and helpful in increase their popularity. Thus, in the gender
category, female and male in the Malaysia are the potential customers for Maxis. For
example some of the male business man need to make call with client, and women like to
use phone to have a long chart with friends. So that maxis can focus more on this
segmentation.

3.1.2 Economic
Currency can become one of the major influences that influence business activity. For
example, dropped of Malaysia currency incurred more cost to business. The basic salary
of the Maxis employees are fixed for the duration of contract. It can be determine that the
individual performance and the inflation price index will effect on the rates of salary.
Also, Maxis is returning to list on Bursa Malaysia in November or December and its draft
prospectus is posted on the Securities Commission website. Maxis was taken private in
2007 and de-listed from Bursa the same year.

Next, the second economic issues are discusses about implementation of GST in
Malaysia. Implementation of GST will decrease the purchasing power of the consumer.
Previous, consumer use same amount of the income can purchase more products.
However, after the implementation of GST, the product that consumer can purchase by
using same income were reduce. Therefore, the purchasing power have significant
reduce. Consumer incur 6% of the GST charge of the amount their purchase. Thus,
implementation of GST became threats to Maxis.

3.1.3 Sociocultural
Maxis provided availability of more advanced smartphone models in Malaysia. People
nowadays seek continuously with new substances. Maxis were the first
telecommunication company to offer IPhone in Malaysia, achieve the annual target and
continue boost with blackberry phones. Also, Maxis provided different plan package to
different kind of users. For example, business value plan for business people and hotlink
prepaid plan package to economic consumer. Maxis also offer a lots of cheaper plan
package to consumer compared to competitor. Maxis able to strength their images in
consumer mind. Besides that, Maxis able to serve huge market by offer difference
product compare to other competitor in market.

Besides that, the population of Malaysia in rural area is very few. Maxis may
consider building a center in the area in order to able cover entire network in Malaysia. it
is because Maxis has an uncertainty line in rural area and it was affect their business
growing as compare with Celcom. Since Celcom had expanded their business to rural
area. Therefore, if Maxis do the same strategy with Celcom it will affect their business in
rural area rapidly as well. It will also help to stronger business image in
telecommunication industry.

3.1.4 Technological
Technological changes people life and also the way they behave. Nowadays, people are
widely using smartphone and tablets to help them connect to the internet every day. This
changes created new way for company to conduct their business. For those companies
able to adapt changes in this technology era can stay long in the market.

According to the reporter from the edge market website by Surin Murugiah,
shares of Maxis Bhd advanced 2.14%. Maxis were in non-binding, it will going to have a
potential merger of Aircel with Reliances wireless business with Reliance
Communications Ltd in India. The Reliances tower and optical fibre assets will go to
exclude in the potential merger. Therefore, it is a potential opportunity to Maxis to grow
in the business.

Besides that, Maxis technology was helping firm to actively invest in research and
development. The reason of invest in research and development can help the firm keep
produce innovate product in order to stay competitive in the market. Besides that, keep
involve in research and development also provide company an opportunities that produce
a product that can well satisfy consumer needs and wants. Obviously, technological bring
opportunities to Maxis. Maxis commercially launched the first-in-the-world contactless
integrated mobile payment services that utilized Near Field communication technology,
with partners Nokia, Visa, Maybank and Touch 'n Go to pay for purchases and
transportation charges using mobile phones in year 9 April 2009.

3.1.5 Political/ legal

Political and legal segment represents how organizations and governments mutually try to
influences each other and how firms try to understand the influences on their strategic
actions. On 14th December 2010, Malaysia government had sign a landmark of a 10 years
agreement with Telekom Malaysia Bhd and Maxis Broadband Shd Bhd. Malaysia
government limits the level of playing field for foreign players in the industry. So that,
the quality of the network was improve naturally after the project launched.

Moreover, Maxis purposely owned and controlled the official website contents its
because their content supplier was protected by copyright. The collection of all content
on the website and the service are the exclusive property of Maxis.

Maxis also have created a very strict condition to avoid broadband user abuse this
is because Maxis set the requirement of the age limit is 18 years old for every customer
and sub-users was under18 years old must have authorization from the account owner to
sign the Maxis service package. Before register as a Maxis customer, the person must
obtain permission from the registered customer.
 Therefore, Maxis have to make the business systematically in order to maintain
the operation of an organization. It will also helpful in achieving the business goals.

3.1.6 Global
Market and consumers are more global. The segment includes relevant new global market
and existing market that are changing. In India, a wholly-owned subsidiary of Malaysian
telecommunication which is Global Communication Services Holdings, has used to the
Foreign Investment Promotion Board in order to increase direct and indirect shareholding
in Aircel from 26 percent to 73.9 percent.

Maxis and the Western Union Company announce to launch of mobile money
transfer service in Malaysia in the year 2009. It applied 11 million Maxis subscribers and
1.9 million foreign workers in Malaysia to make the mobile services directly from their
mobile phones.

On the other hand, Maxis plan to relieve one of their headaches with their new
MaxisONE World international roaming plan which gives you unlimited calls and SMS.
This is a plan by Maxis and make to user using existing local data quota in the overseas.
But for the other telecommunication are only offers daily quotas with the same price. It is
helpful for those business man who always outstanding to overseas. It is a very
convenience and practical new plan for Maxis.

3.1.7 Physical
Physical segments are refers to potential and actual changes in the physical environment
and business practices that are intended to positively respond to those changes. The issues
that Maxis concern is improve the values of the company and provide effective and
efficient services such as operating hours and user-friendly facilities to customers.

Maxis main challenges today is need to defeat the competitor. Maxis had face to
network quota problem and have big issues with the public figure. So that, Maxis need to
figure some strategies in order to respond customer needs and wants. Maxis need to
deliver newer technology applications to their current customers and try to attract new
customer base through management of change.
 Therefore, Maxis customers will gain more confidents to Maxis and be a loyal
customer to them. Maxis will also maintain their customers through this way.

3.2 Industry Condition (Portal Five Forces)

The 5 porter force analysis deployed the idea regardless the industry analysis which
include threats of substitute product, threats of new entrant, bargaining power of supply,
bargaining power of buyer, intensity of rivalry among competitors. These forces can
consider in the external analysis to help the Maxis to determine their own external
strength and weakness and can based on this external industry analysis to decide the
corporate strategy.

These forces also important to identify the number of competitors in current

market the Maxis need to be compete and find out which competitors will threaten them.
If Maxis supplier and buyer cannot get the right deal, it will drive them wish to seek out
some of the company competition. Maxis can used these forces to understand their own
attractiveness, profitability and competitiveness in order can make themselves become
more suitable in the market.

3.2.1 Threat of New Entrant

First of all, threat of new entrant can be describe as the ability of an organization to enter
in the market. If new competitors can enter into market easily it will make the value of
the industry become low and reducing profits so is important for Maxis to understand
whether any new competitors can quickly enter and cause threaten for them. Maxis
should base on several factors which stated as below to analysis the level of threat of new
entrant.

i. Economic of scale
To understand the threat of new entrant, the Maxis need to base on the economics of scale
which mean that organization can gain profit or benefit when the number of production
output is much. The product and service such as the prepaid, broadband, postpaid and so
on the Maxis will provide to customers will be similar with another telecommunication
so mean that the Maxis should focus to produce as more as they can because if the more
Maxis can produce, the less cost the Maxis can enjoyed and the more flexibility in pricing
the Maxis can make the adjustment. Finally, the Maxis can release the lower price
package for their customer because every consumer will seek the price as low as possible.

ii. Product differentiation

Product differentiation can be defined that is the marketing strategy which the retailer
should make their product different with other similar characteristic of competitor.
Although the Maxis is the one first mover to develop the 3G technology but still need to
come out more innovation of technology which make the Malaysia technological become
more advanced otherwise too difficult to survive in current market. Maxis should not just
stay somewhere should keep going make change in product. For example, Maxis produce
the latest technology 4G to customer so they should keep going to update their ability and
produce something different such as 5G in future.

Telecommunication industry is competitive business which customer easily to

make comparison with other available competitor especially is the package and
technology the telecommunication industry able to provide. Thus, is crucial of if the
customer can view the technology and system the telecommunication industry able to
provide in the form of superior and special than other similar competitor so the successful
product differentiation can automatically become one of the competitive advantage for
telecommunication industry, is important for industry take consideration.

iii. Government Policy

Besides that, every new entrant to start up a new telecommunication industry should
necessary to obtain a license through Multimedia Communication and Multimedia
Commission (MCMC). However, it is somewhat difficult and expensive to get an
approve license due to MCMC strict requirements and need to take longer time for
waiting to get approve so the permit to apply business license show it is high entrant of
barrier.

The copy right also is important feature the telecommunication industry must take
high seriously to consider so when the telecommunication industry enter they must enroll
the copy right under the intellectual property corporation of Malaysia so it include more
procedure and policy might be take time and cost, need to access more man power and
resources to process it. All of the strict and much more government policy showed the
barrier to start up the telecommunication industry.

iv. Capital requirement

Other than an expensive license, for the new entrant of telecommunication industry high
capital investment is requirement. Capital requirement is important to consider when start
up a new business. Telecommunication industry also required high fixed costs which
might be reaching around few billion to set up a new telecommunication organization and
spend much more regardless on network equipment and to maintain development.

Besides, a new telecommunication industry need to have huge amount of working

capital to cover a need otherwise difficult to survive in market smoothly since the
revenue need to take time to earn back, capital to use for step up a new branch, capital to
hire man power, capital to purchase the raw material to do business such as broadband,
modern and other related resources, capital to promote their reputation since they still
consider as new company and other highest expense. The high capital requirement shows
that increasingly the barrier for new entrant.

v. Switching Cost
Next is switching cost mean consumer incurs as a result of changing brands, suppliers or
products. In the telecommunication sector, consumer easy to switch to another competitor
when they perceive the high value product with low price appear in current market so
mean that is low switching cost when other competitors such as Digi, Umobile, Celcom
come out a new type of package. For example, currently, U mobile have come out a new
package which can provide around 30 GB of quota with only RM 98 so when
telecommunication enter if they unable to follow this tempo, will exist small number of
customer would try their service only in the short period and customer will easily to
switch back to other brand which can provide utility of internet at the same time come
with lower fee so not long the new telecommunication will beat down by strong
competitor.

vi. Access to Distribution Channel

Maxis have different partner in locally and globally to offer a good product and service to
customer. It has around 250 outlets available in Malaysia to serve their customer. The
Maxis have a lot of long term agreement with different distributor which will help Maxis
to provide a value-added service to customers. Due to the good distributor will help the
Maxis to build successful in broadband market.

vii. Cost Disadvantage Independent of Scale

New telecommunication industry still difficult to gain advantage such as supply for the
different type of the raw material on broadband, modern and other internet resources with
the low price because they still need to take time to have a great deal with supplier. Since
some of the competitor exist in current market a period of time so they are already have a
long term contact with supplier so the new telecommunication industry necessary to take
time and will slower than the other competitor who can gain good price offer by their
long term supplier.

In conclusion, as we know that the factor we have discuss stated that the Maxis
threat of new entrant will result on low switching cost, high economic of scale, strict
government policy, high access to distribution channel, huge capital requirement, need
for product differentiation and include the high cost disadvantage independent of scale.
Therefore, all of the result showed that it is high new entrant barrier.

3.2.2 Bargaining Power of Supplier

The bargaining power of supplier determines the extent of supplier power. The most of
the network component for the Maxis is import from the oversea which mean that it is
difficult for Maxis to find their network component in Malaysia. Maxis import the
network component from only few of the supplier and the equipment is buying from
Motorola, Siemens and Trisilco Folec but recently one of the supplier Siemens become a
sub-contractor to Motorola so make the Maxis have only can supply from 2 main
supplier. Maxis will maintain a good working relationship with them. However, when
they are limited number of supplier which mean that the power of the supplier is high so
the suppliers have ability to control anything by increasing the price of equipment or
reduce the quality of equipment. As we know when those limited number of supplier
provide equipment are differentiated make the bargaining power of supply is become
stronger.

A good quality product and service is needed to invest in high modernization

technology so is an important issue for Maxis to consider in order to survival in the
market. Maxis should make sure the equipment from the supplier is a great quality, yet it
makes the ability of supplier become stauncher. Therefore, the bargaining power of
supplier is high.

3.2.3 Bargaining Power of Buyer

Moreover, the bargaining power of buyer is moderate. Since nowadays the buyers have
more opportunity to evaluate the capability of service the Maxis have been provided and
the buyers will automatically make the comparison with another competitor who have
also provide the similar service such as the main competitor of Maxis which are Celcom,
Digi, Umobile.

Besides, they still exist high level of competition between the telecommunication
industries and different type of the alternative lead to low switching cost. Although the
buyer is high price sensitivity and seek for the best service but buyer have no power to
decided price and the position of Maxis still consider is one of leading
telecommunication in market so buyer feel more reliable and believe with Maxis.

In current market, Maxis remain stable position and still can consider involve one
of the higher number of valued customer so although the price increase the number of the
customer still will not affect too much for Maxis but still need to consider the probability
of switching risk for buyer will easily switch to other similar characteristic of competitor
such as Celcom, Digi, Umobile and so on. Therefore, the bargaining power of buyer is
moderate.
3.2.4 Threat of Substitute Product
The meanings of substitute product are the customers have a lot of available alternative to
decide and make change for those who can provide the good services for them. Maxis
have many traditional substitute communication devices which include by using fax,
fixed home line telephone, email, letter, and so on. But now is the 21th century, the
traditional substitute communication will not cause high challenge for Maxis. The Maxis
should more concern on the internet service because it became most popular devices for
people rather than use hand phone because internet service are faster and zero cost. For
example, people can use whatup, facebook message, wechat and so on to make contact
with another people so it is important for Maxis to provide a best quality and wide
coverage with low price package of internet service for people.

Besides, the substitution will always occur when there is a high competitive
industry. The factor will lead to the some threat of substitute for Maxis is due to the price
change or level of service quality of substitute product. For example, the price
manipulation and quality service among other competitor which will force the competitor
become a substitute industry available for customer to select so it will threat for Maxis so
is a crucial point for Maxis should make the consideration. If Maxis unable to provide a
great quality of product to consumers in lower price than other competitor so as a result
on the Maxis easily will substitute by other brand of telecommunication industry such as
Celcom, Digi, Umobile and so on.

Threat of substitute will directly affect the revenue of the Maxis can gain.
However, Maxis will not so easy to substitute by other competitor because Maxis in
current market have their stable position but still exist some of threat for Maxis should
worry but the traditional substitute communication will not cause too big challenge for
Maxis in current market. Hence, the level of the threat of substitute product for Maxis to
be considered is moderate.

3.2.5 Rivalry among Competitors

Next, the capability of maxis make them can have moderate intensity of rivalry among
competitors. Due to the strict government requirement the Maxis have only some of the
competitor in Malaysia which includes TM, Maxis, Digi, Celcom, Umobile and so on.
These will become a competition between the telecommunication industries to compete
with those provide the similar service to customers so will lead to the intensity of rivalry
among competitors. Maxis will definitely compete on the low call rates, cheap package
price, wide coverage, and good customer service with other competitors.

As we know that, the Maxis have also facing the current competitor who are
invest amount of the money on advertising to promote their products and to attract more
customers choose their product so it will lead the huge stress for Maxis to come out more
new idea in order can have a stable position in the current market but cannot be deny that
currently Maxis is already lead the telecommunication industry. The reason is the Maxis
keep going to improve their service, produce differentiation product and Maxis is the first
mover who produce the 3G internet service to customers and now still continually to
make the improvement such as now have the latest technology which the Maxis have
been produced technology called 4G.

The modern technology will help the Maxis increase more opportunity to compete
among other competitors. Therefore, the Maxis still become one of the leader to lead the
telecommunication industry because one of the reason is the popularity brand name will
help the people feel more reliable and believe with Maxis.

3.2.6 Conclusion for Portal Five Forces

Maxis is the high profit potential industry. Maxis have high new entrant barrier because
high level of economics of scale, product differentiation, huge capital requirement, strict
government policy, low switching cost, high access to distribution channel and high cost
disadvantages independent of scale.

Besides, Maxis also have strong bargaining power of supplier due to limited
number of suppliers and need to import form oversea and also the bargaining power of
buyer is moderate because the customer still feel more reliable and have no power to set
the price and also have moderate level of the threat of substitute.

Addition, Maxis still exist moderate intensity of rivalry among competitors

because available only few of the telecommunication alternative to let customer decide
 and make change and strict government requirement make the Maxis have only some of
the competitor in Malaysia. Therefore, Maxis is the high profit potential industry.

3.2.7 Summary of Situation Analysis

High new entrant barrier

High bargaining power of supplier Telecommunication

industries still consider is
the high profit potential
Moderate bargaining power of buyer
industry in current
market

Moderate level of the threat of substitute

3.3 SWOT Analysis

Strengths
Moderate intensity of rivalry among competitors Weaknesses

-Strong brand image and market leader in -Interruption of the line at certain areas
Malaysia
-Low transparency
-Good customer services
-Inequity
-Strong and effective distribution network

Opportunities Threats

-New target segment -Competitor promote aggressive broadband

services
-Building Maxis center in rural area
-Natural disaster
-Produce own smartphone
-GST
-Invest in research and development

- Target tourism market

3.3.1 Strengths
3.3.1.1 Strong brand image and market leader in Malaysia. Maxis are the leading mobile
communications services provider in Malaysia. Maxis have offer 2 basis: postpaid basis
under Maxis brand and prepaid basis under Hotlink brans. Maxis were the 3G services
first launcher in Malaysia and it is known as Maxis3G. They was also the first operator to
bring the Blackberry, Apple iPhone and Samsung to Malaysia. Besides that, they have
promoted their products through partnership with Astro. Compare to DiGi, DiGi need to
implement a lot of marketing strategies to persuade customer in order to get as much
customer as they could.

3.3.1.2 Good customer services. Maxis defined themselves with the values of simple,
trustworthy, creative and brave. Maxis topped the Malaysias most admired company in
Wall Street Journal Asia in 2006. As we can assume that Maxis has focused very much on
the quality of the customer services to maintain their reputation and image (Ricky, 2014).
Maxis provide the stable services to customer in the same time avoid accidents and
service disruption, through this way Maxis had remain the customer expectation and
loyalty. To maintain a high quality service is to meet and exceed the customer satisfaction
and expectation. Maxis have their own techniques to enhance the customer experience:
standardization customer service, enhanced communication and training employees.

3.3.1.3 Strong and effective distribution network. Maxis wide network comprises over
21,000 point of sale and 12,000 are physical retail locations across Malaysia. They are
also well-placed to capitalize on fast growing broadband and data to supplement their
segmentation strategy (Sandip, 2010).

3.3.2 Weaknesses
3.3.2.1 Interruption of the line at certain areas. Compare to Celcom, Celcom have
planning to close the gap network gap between the urban and rural areas. For the Maxis
group said they will remain focused on strengthening its market position. Because of the
Maxis has no plan to enter the rural area now so the line will not stable as Celcom.

3.3.2.2 Low transparency. Maxis charge their customer under circumstances that
customer does not know and charge the things that not written in their plan before. This is
one of their weak points, because this will make customers feel that they have been
deceived and they will switch to other competitors easily.

3.3.2.3 Inequity. Recently, Maxis had loosing huge number of their loyal from current
and new users after scandal and an unfair treatment of Maxis toward their customers.
There is one customer discover that Maxis offering different mobile price plans to certain
users and once the news has release, it has gone viral across Malaysia. The greater
different between prices plans that only for certain customers have caused particular
customer anger. Maxis should improve in this point, otherwise they will face greater
losses in the future.

3.3.3 Opportunities
3.3.3.1 New target segment. According to the statistic showed that more than 50%
population of Malaysia were under 25 years old. Nowadays, the young generation is data
hungry. They can target more on teenagers and low income people. They are tied to the
smartphone, data and network. So, if Maxis come out a plan like aggressive broadband
service to targets this group of people, this will give a lot of pressure on other
competitors.

3.3.3.2 Building Maxis center in rural area. Although population Malaysia in rural area is
decline but in order to let Maxis network able to cover entire Malaysia, building Maxis
center might be a good way. Because of Maxis has an uncertainty line in rural area, so
their business not extensive as Celcom. Since Celcom had expanded their business to
rural area. So, if Maxis can follow this strategy to expand their business in rural area,
there will be significant change in the telecommunication industry. With this change, it
may also enhance Malaysias population in rural area. The figure in the below is show
that rural population (% of total population) in Malaysia was last measured at 25.99 in
2014 (Trading Economics, 2014).

Figure 1: Rural Population (% Of Total Population) in Malaysia

 (Source: Trading Economics, 2014)

3.3.3.3 Produce own smartphone. Since there are no telecommunications company has
this strategy yet, Maxis can be a first leader to implement this strategy and to increasing
their sales and loyalty. Maxis create their own brand smartphone so they can bring
forward with their own plan and offer smartphone services to expand their business
scope.

3.3.3.4 Invest in research and development. Nowadays, advanced technology was helping
many industries become more effective. Maxis can utilize this advanced technology to
actively invest in research and development. Through fully utilize the technology, Maxis
able to innovate their product and stay competitive in market. Besides, it also earn
customer loyalty through understand what can satisfy their needs and wants.

3.3.3.5 Target tourism market. According to tourism Malaysia, Malaysia has total 25.7
million arrivals in year 2015. It is a significant number and the potential market is huge.
To increase the sales of Maxis and attract more customer in this market, Maxis can tailor
a unique plan for the tourists. As a telecommunication provider, they should also upgrade
the service provided in the country and focus on tourism promotion by provide more
advanced internet service to enhance and maintain the targeted tourism market.
3.3.4 Threat
3.3.4.1 Competitor promote aggressive broadband services. Celcom introduced a new
entry level postpaid plan recently which significantly undercut all competitors plan.
Besides of the original competitors, Maxis also competing with Wimax in the mobile
broadband market (Kong, 2015). Celcom and DiGi (Asiya, 2009) launched mobile
devices even Telekom Malaysia Berhad (Business News, 2016) also launch its wireless
services to put pressure on telecommunication industry. The rise of the new telco also
have a direct impact on the maxis, this is because all the telco company have offer similar
products and plans.

3.3.4.2 Natural disaster. Natural disaster will cause negative short-run economic impact
(Yamini, 2014). When disasters happen, traditional communication links are often
disrupted. Maxis need to fix the network problem as soon as possible when disaster
occurs. Compared with the normal network disruption, this have to takes a lot of time and
money to overcome.

3.3.4.3 GST. Since government have implement the GST, every reload for prepaid is
subjected to it upon activation. This was made many customers feel the burden of GST
for the prepaid. This is the rule which imposed by government to replacing the SST, it is
not only a huge threat for all businesses but also against whole telecommunication
industries.

3.4 Value chain analysis

Value chain analysis a study to understand how the company going to create the
customer value that can know the differences contribution in the company. Other than
that, is to understand the cost position in the company and implementation of a chosen
business-level strategy. Value chain analysis to ensure company to become a core
competence and a source of competitive advantage in capabilities of a firm to perform an
activity in a god manner that provides superior value relative to competitors and a value
creating activity that competitor cannot perform.
 Maxis one to achieve to be a leading communication service provider in Malaysia
and business that connect and communicate anytime and anywhere. Maxis passion is to
innovate and market services that are worry free and always on for the customer. They
want to provide unmatched experience to the customer and make sure customer enjoy a
superior internet experience, voice calls and text that can immerse themselves in an ever
expanding universe of connected application on the most advance cellular network,
encompassing 3G and 4G LTE technologies. This to ensure maxis can stay focused on
their goals. The value chain disaggregates firm into a strategic relevant activities in order
to understand the behavior of cost and existing potential source of differentiate (Porter
1985).

There is usually nine generic value chain:

1. Firm structure
2. Human resource management
3. Technology development
4. Procurement
5. Inbound logistic
6. Operations
7. Outbound logistic
8. Marketing & sales Primary activities
9. Services

Primary activities
Primary activities are and activities that have to look at on the external that usually relate
to competing with other competitor. Each of the primary activities is important in the
organization to compete against other competitor. Each of the activities have they own
role play in the organization.

3.4.1 Inbound logistic

In the inbound logistic usually we look at the activities in handling the product. How
Maxis Company handle the product when they receive, use of material to produce the
product and storing the product. This is an important activity that is to support the
operations part. Each part plays importance roles such as engineering roles to handle the
switching equipment, cable, connection speed and others. In Maxis Company have
intelligence department that help to produce technology and software.
3.4.2 Operation
In operation is an activity that will transform and input into the final product. Without this
operations part the company will not succeeded. An activity when start producing the
product to the end product of till packaging. Maxis Company offers the best LTE network
in Malaysia with the average speed right now is 23.88 mbps. They beat other competitors
with their 4G LTE network and win awards in 2015 for the best 4G network. Maxis
revenue prepaid growth from 2014 to 2015 +6.2% growth within a year. This can we be
look at how many customers used and value the product and can see the increasing
revenue of prepaid for maxis. This we can look at the advertising that being done by the
maxis company to attract customer and get customer trust on the product. Maxis play
roles as a jostle for leadership on their mobile internet space. Maxis have a strong
performance in 2015, with group service revenue grows 3.8% year-on-year to rm8.5
billion, drive by a solid prepaid and improved core of post paid performance. Core post
paid revenue also growth to 2.7% by having strong adoption MaxisONE plan. Other
strong growth is service revenue that grows to 6.2% to RM4.2 billion by rising up the
data usage and bigger share in the migrant segment.

3.4.3 Outbound logistic

Activities that consist of storing, collecting, distribute the finish goods to ware house,
handling, delivery operation, scheduling and processing. Maxis come up with idea of
built with SME and a logistics and transportation to integrate real-time solution for
logistics and transportation. This to offers business owner more information about their
business processes, more automation to manage assets and increase productivity. This
offers customer a new generation of service with a lower cost to services. Other than that
maxis start with the system of convenience to customer same as digi to ease customer to
buy top up from the existing e-pay terminals that being set up at petrol kiosks, retails
stores and shopping malls.

3.4.4 Marketing and Sales

Maxis using marketing mix model that focus on 4P.That is Product, Price, Place, and
Promotion to continue their marketing activities and sales. Produce a product that is they
provide good product to consumer such as Hotlink Fast, Reload Fast,. Maxis maintain the
price for their package for simcard. Place, maxis company find a place for the store to
that is easy for customer to come to the store. Maxis company using promotion and a lot
of advertisement to advertise their promotion for their free call, free sms, free internet
quota.

3.4.5 Services
Maxis Company provide customer service anywhere and anytime to ease the customer to
pay bills, top up for prepaid, hotlink services without customer leaving their seat by
secure online system payment and online web. Other than that, maxis provide their
customer with single sign on (SSO) a process that permits a user to enter their own
username and password to ease them to access multiple application portals. Then
customer need to register their online ID once they uses maxis portal or mobile app with
their single On ID. This to make sure customer feel safe to use the website as the person
who have online access online can login. Maxis try their best to gave the good services to
their customer as they want to create Happy customer to their company.

4.0 Strategy Option

4.1 Market development

According to tourism Malaysia, Malaysia has total 25.7 million arrivals and receipts 69.1
billion in year 2015. The current trend of tourist arrival has brings a significant market
potential. It is a significant number and the potential market is huge. Telecommunication
provider should upgrade the service provided in the country, they should focus on
international tourism promotion by provide internet service to enhance and maintain the
target group for international tourist arrivals. From there could identify the business
opportunities.

Suggest that, Maxis may expand their business to potential tourism market. To
attract this market, Maxis can tailor a tourism plan for tourists. Let say, provide a
temporary network access to tourists based on how many day they travel or how much
they top up. It must be convenient for register because most of the time we difficult to
obtain their full information. Refer to True Move mobile telephone company in Thailand,
Maxis may give away free SIM cards for tourists arriving into Malaysia.

Thus, Maxis can set up a counter at airport to help tourist get the plan, SIM card
and other information. It actually can catch the first before the tourist buy SIM card from
other competitor. Tourists are supposed to use at any 7-Eleven store to add balance to the
free SIM before using it. Prepaid SIM card and plan is more flexible for tourists as it is
less procedure and top up is depend on tourists. Meanwhile, foreign worker also a
potential market as Malaysia import many foreign workers in recent years. Therefore,
Maxis could take this opportunity to tailor a mobile network plan to foreign worker. For
instance, IDD call plan or local network plan with cheaper and saver price. This kind of
market development strategy may help Maxis stand in the high competitive position.

4.2 Product diversification

The industry is competitive among the competitor as competitor keep promote aggressive
plan. For example, Celcom introduced a new entry level postpaid plan recently which
significantly undercut all competitors plan. The rise of the new telecommunication
provider also have a bring impact on Maxis. The extensive competitive is because all of
the telecommunication provider are offer similar products and plans. Therefore, to
achieve greater competitiveness, the improvement of competitive advantage is necessary.
With the strength of R&D, expansion of existing product line is a strategy to growth
its business. To increase the revenue sources one of the possible options for Maxis is
develop a new product such as satellite television or online television streaming. For
many years, one particular pay TV service dominated the industry. But a few more are
making their presence known, by offering better service and better deal. With more
people using Maxis, Maxis may offer pay TV as it comes together with the broadband
service. The service can along with an additional phone line as well. It also can use as a
marketing technique to attract customer by adding value on the current product. For
people who subscribe to Maxis plan can have access to the online TV.
Other than that, Maxis develop an Internet subscription service, which provides
subscription service streaming movies and TV episodes over the Internet. It also offer
individual TV package to people who only interested to subscribe online TV and make it
customizable. It can target to the people who seldom go out and likely spend time at
home, watching television. Once the customers join the membership then they can enjoy
the latest movie at anywhere they are.

4.3 Strategy alliance

Strategy alliance is a business alliance between two businesses forming a short term or
long term collaboration relationship to achieve business goal. It may be useful for
businesses looking to grow in unfamiliar markets, tap new customer segments, or sell
additional products or services. Maxis may seek for strategy alliance with other firms
who has required resource to add value on its service or product. Strategy alliance is able
to help the firm enlarge the resource, talents and investment.
In this case, Maxis is weakness on rural area connection therefore they are challenge
to improve their network quality to compete in rural area with stable coverage support.
For a stable internet access to rural area communities, Maxis may seek for possible
collaboration with other firm can provide required ability. For example, Telecom
Malaysia is Malaysia leading Telecommunication Company, and it covered most urban
centres in Peninsular Malaysia. As it is one of the largest government-linked companies
in the country they actually have huge resources. So Maxis can look for partnering with
Telecom Malaysia which has stable network quality and wider coverage in Malaysia. As
Maxis has interruption line at certain area, it could bring the opportunity for Maxis to
alliance with other telecommunication service to overcome their weakness. By joining
this kind of strategic relationship, Maxis can has greater accessibility to rural area and
expand their business to there.

5.0 Key selection criteria

5.1 Product diversification

The product diversification for Maxis is decided to develop new product such as satellite
television or online television streaming. Maxis offer this advantage to people who have
using broadband service as well as along with additional phone line. However, before the
Maxis need to implement this strategy they should consider many type of the factor
which will influence the total outcome of product. For example, is important for the
Maxis to consider the risk, cost, and time line to implement product diversification with
to develop new product such as satellite television and online television streaming.

The risk for Maxis to develop satellite television and online television streaming
can be accounted as is the high risk strategy. The reason for this strategy is high risk due
to the Maxis need to undertake the high cost on developing and marketing the new
product so at the same time this will directly create the high risk for company to suffer
because the Maxis need to ensure they can get back the identical result in order to prevent
any loss. If appear any failure over manufacture process will bring out much more risk as
well as the higher manufacture cost because Maxis might necessary to expand their
human and financial resources at the same time when occur failure which may detract
focus, commitment and sustainable investment in the core industries. Risk will increase if
the Maxis new product cost of market entry is very high so in those scenarios, the benefit
to your company may not offset the risk. Since the new product will no stable initially
and Maxis need to take long time to advertise their product and to adopt in market.

To said that when Maxis enter into another unknown market which they haven
attempt before with launched unfamiliar product mean a lack of experience in the new
skill and exist high probability to suffer any other sudden technique required. Therefore,
it will put the Maxis in a great uncertainty condition. Yet, we can seem existing current
market already have a powerful competitor such as Telekom Malaysia (TM) who had also
develop this type of technology previously and people already well known them and
believe their service in current cicumstances so it will be difficult for Maxis to compete
with TM. Besides, since its the high risk strategy so its important to evaluate the
existing market between the opportunity and level of risk and then to decide whether this
strategy deserves to further implement in future. But the Maxis have stable organization
structure and steady position in current business environment so creates a dilemma for
firms in that these risky settings also offer enormous growth opportunities.

Other than that, the cost for Maxis to diversify the new product satellite television
and online television streaming into current market is high. Maxis need to invest high
cost for doing R&D to understand current need and expectation of the customer before
launched product into current market. Otherwise is too difficult for maxis to successful in
competitive market since that the current market exist a powerful competitor can be
known as Telekom Malaysia. Maxis also need to invest huge amount of the cost during
the developing and marketing the new product and they also need to spend extra money
to expand their human resource and technique resources as well as should also need to
cover the failure manufacture fee. Since the Maxis need to develop satellite television and
online television, the material and telecommunications tower can be cost higher price and
they need to pay high price only can hired the experience and knowledge worker.

Besides, Maxis need to include cost for repackaging all of the product, flyer, and
advertisement and so on can be change to make it available and suited with the local
consumers. Maxis also need to take time to resize the entire thing. For example,
repricing all of the Maxis broadband package, renamed new services and examine and
resized again their target market, the entire process will cause high cost and time to fulfill
all of the alter process. Maxis need to also include the cost for the licenses fee and other
regulation fee in order to success to launched satellite television and online television in
market because seem like not easy obtain government approve. Thus, product
diversification for Maxis to launched new technology can be expensive, especially when
launching it broadly in a new market.

Furthermore, the timeline for Maxis to develop the satellite television and online
television is long because Maxis need to take longer time to implement standards for
technology testing to ensure they will not have any dangerous and everything will come
smoothly when launched in the market and the time file also need to consider the failure
manufacture period so it can impose substantial lead times. It is not so easily during the
testing period so need to take longer time. Besides, Maxis need to take longer time also to
wait for any approve from relevant authorities so many of these regulations will consider
one of the factor will delay all of the establish time for Maxis able to launched satellite
television and online television in market.

In conclusion, if maxis decided to implement product diversification to develop

new technology called satellite television and online television can impose high cost of
developing, marketing, license, R&D and so on, include high risk of operation since the
Maxis still unfamiliar in this area and other important factor in his developing process but
since Maxis have stable organization structure and steady position in current business
environment so creates a dilemma for firms in that these risky settings also offer
enormous growth opportunities and need to take longer timeline to launch this new type
of technology.

5.2 Strategy Alliance

Strategy alliance is a business alliance between two businesses forming a short term or
long term collaboration relationship to achieve business goal. Strategy alliance for Maxis
is to add value on its service or product and improve their network quality to compete in
rural area with stable coverage support. Although this strategy may bring a huge benefits
to Maxis but it may also have some factors need to be considered. There are three of the
main factors which are risk, cost and timeline will affect the planning and outcome of the
company. If these three factors cannot reach a standard level, it would be a waste of
company time, capital and resources.

The risk for Maxis using strategy alliance to add value on its service or product
and improve their network quality to compete in rural area with stable coverage support
is in an average risk level. The reason is Maxis need to understand the cultural
differences between both parties, so it require take some time to understand both culture.
If did not understand better both culture it may result in a bad situation like
misunderstanding. For example, Telekom Malaysia (TM), which already is a powerful
competitor in this industry since we are in the similar industry so the cultural will not
have a big gap, so both parties may understand each other faster. Besides, if we are
partner with known company in same industry, the risk of strategic goal divergence will
be eliminated, this is because we have a same goal to achieve a better customer service.
As we can see Telekom Malaysia (TM) have a high quality performance in this
telecommunication industry, if partner with them, Maxis no need consider the risk of
partners quality performance. Nevertheless, the most important risk that Maxis need to
consider is partner may want takes advantage of its position, it may happen while the
partner have the right higher than Maxis or more capital than Maxis. In this aspect, Maxis
can make an agreement with it partner to balance both parties power of control.

Transaction cost will be the main determinant for the Maxis to establish an
alliance. The reason is transaction costs consist in cost of drafting and negotiating an
agreement, monitoring, bonding and enforcing. If Maxis make strategy alliance with a
company, there are all of the cost Maxis need to undertake with that company. Maxis
need to invest high cost for planning and drafting an agreement to let the particular
partner understand Maxis objectives and goals. Since, every company have difference
goals and objectives, so Maxis need to put a lot of effort on this drafting agreement to let
the particular partner know better their expectation. After negotiating with particular
partner, Maxis need to take effort on monitoring the management, it may incurred a high
cost in this phase. This is because this strategy alliance is link the management between
both parties, so Maxis have to change and integrate some more to meet new partner. This
change is included internal and external, so it definitely high cost. Besides Maxis need to
take time to adapt the new things, because different company have difference styles or
ways to do things, to accomplish the entire process will incurred high cost. Thus, cost of
strategy alliance for Maxis can be counted as high cost level.

Moreover, the timeline for Maxis to establish a strategy alliance can be accounted
as a long time strategy because Maxis need to conduct a lot of process before achieve an
alliance. Since Maxis want to add value on its service or product and improve their
network quality to compete in rural area with stable coverage support so they need to
make some analysis to choosing an effective partner and make some evaluation about that
potential partners. After select a partner, Maxis need to take some time in drafting and
negotiating an agreement, monitoring, bonding and enforcing. Maxis need to come out
some proposal or planning to let their partner know what is their expectation and carry on
negotiate phase, monitoring, bonding and enforcing. It considered as a long time strategy
for Maxis.

In conclusion, if maxis decided to establish strategy alliance with other company

to add value on its service or product and improve their network quality to compete in
rural area with stable coverage support, Maxis can consider Telekom Malaysia (TM) as a
potential partner, which has stable network quality and large coverage in Malaysia. By
joining this kind of strategic relationship, Maxis can has greater accessibility to rural area
and expand their business to there. Yet, Maxis might confront with high transaction costs
and need to take longer timeline to conduct some process to achieve an alliance. In case
Maxis can reduce the transaction cost and make shorter the timeline, strategy alliance
might be a good strategy to Maxis.

5.3 Market development

The market development is for Maxis to create opportunity to develop market such us
expand potential foreign market. Maxis offer this advantage to tourist who visits
Malaysia. However, before the Maxis need to implement this strategy they should
consider many type of the factor which will influence the development of market. For
example, is important for the Maxis to consider the risk, cost, and time line to develop
potential market with to create tourism plan to tourist.

The risk for Maxis to develop market can consider as low risk strategy. It is about
existing product expand to new market, so maxis must understand the specific
demographic group who will be most likely to purchase it. For example, for the lower
income foreign worker in Malaysia, most of them will choose the cheapest plan and the
cheapest service. With that, Maxis may compare the product and service strategy with the
competitor such as Digi and Celcom. So that, maxis suggest to come out cheaper plan for
foreign people compare to the competitor and provide the newest services for foreign
people in order to expand the market development.

Besides that, the cost for Maxis to diversify the new tourism plan to tourist is
high. Due to the current main suppliers of Maxis is only from Malaysia, and the currency
of Malaysia is dropping in this recent year, it cause Maxis should paid more cost to come
out new plan and package. They can try to looking the corporate partner which are
located at Malaysia. for example, tourism bureau. When Maxis want to implement the
market development strategy, they will paid a lot of money to purchase their target
company, so the company cash flow might decrease a short-term period. But when
looking this strategy on long term opinion, it will become the competitive advantage of
company because the costs of primary or support activities are below those of
competitors, the selling price also will become lower and finally it will attract more
customers.

Furthermore, When Maxis want to implement this strategy the timeline that they
need to take is quite low, they should doing some research in this market to choose the
right target, because the performance and internal environment of that potential
company is very important to Maxis, because it might bring the benefits to Maxis or harm
to Maxis. But normally the manager can finish the research in short time period. After the
acquisition is completed, Maxis should take a time to deal the cooperate cultures and
resolving problems regarding the status of the newly acquired firms executives.

In conclusion, Maxis have to decide to implement market development to develop

new tourism plan package to tourist, it can impose high cost of developing, promoting
and so on, include low risk of operation when the Maxis understand the specific wants of
demographic and other important factor in the developing in market. Nevertheless, Maxis
have to take shorter timeline to launch the new tourism plan package to tourist.

6.0 Recommendation
Maxis Company should adapt the Market development strategy on helping the company
to grow. This is because based on the mission of the company to bring the future to the
customer lives and businesses in manner that is easy for the consumer to adapt and also
personalized to the consumer to make sure is privacy and special to the consumer. When
Maxis Company develop market development strategy. This helps the company to create
new ideas in develop new technology in their telecommunication system. Maxis
Company can attract more people when they adapt the market development strategy
when company tries to create new ideas on the marketing.

Other than that vision of the Maxis state that to be efficiently and creatively
harnessing leading-edge technology and delivering a brand of service experience that is
reliable and enchanting. Maxis need to maintain on their speed of the data line and
provide the data line service that fast and reasonable to the consumer. This ensures the
royalty from the consumer. In order for Maxis to achieve the mission to become the
nation premier integrated communications service provider they need to develop new
marketing strategy such as gave a tourist the simcard free when the tourist reach to the
airport so that is ease for them to contact their love ones or easy for them to connect to
other. Second is when the free simcard they provide the top up for the tourist to buy.

Lastly is Maxis can try to ensure the service they gave to the consumer is priority
and provide the cheapest plan for the consumer with benefit. This to ensure the consumer
happy for the service and the advance technology that being provide

7.0 Conclusion
In this report, we have conducted all situation analysis for the Maxis telecommunication
company. General environment has identified from several perspective. Maxis should
take note of the general environment from there to know the current trend and potential
opportunities.

Based on the portal five forces we conclude that the industry is high profit
potential industry. It is an attractive industry. In this case, Maxis have high new entrant
barrier because high level of economics of scale, product differentiation, huge capital
requirement, strict government policy, low switching cost, high access to distribution
channel and high cost disadvantages independent of scale.

Besides, Maxis also have strong bargaining power of supplier due to limited
number of suppliers and need to import form overseas and also the bargaining power of
buyer is moderate because the customer still feel more reliable and have no power to set
the price and also have moderate level of the threat of substitute.

Addition, Maxis still exist moderate intensity of rivalry among competitors

because available only few of the telecommunication alternative to let customer decide
and make change and strict government requirement make the Maxis have only some of
the competitor in Malaysia

The SWOT analysis defined strengths, weaknesses, opportunities, and threats of

Maxis. It defined that Maxis has strong brand image in the Malaysia as a market leader as
well. They able to provided good customer services to their customer and obtained strong
and effective distribution network. However, there is some weakness against to the
strength such as interruption of the line at certain area, especially rural area. Low
transparency subscription fees. Inequality on price charges in different plan and area.

Apart from that, there are several opportunities identified. For example, new
target segment as there is an uptrend in young population. Build Maxis center in rural
area may help Maxis to expand their business to rural area. To stick with the new
technology, Maxis should invest in research and development to become innovation in
the industry. Maxis may become the first telecommunication company in produce own
brand smartphone. Other than that, as the tourism sector has increasing, it bring an
opportunities for Maxis to target on there.

However, the threat from competitor is pressure as competitor keep promote

aggressive plan and service. Natural disaster always is an unpredictable event to every
organization. Change in government policy like implementation of GST also a threat
which impact on company activities.

Furthermore, from value chain analysis we found that Maxis is good in handling
its operation from producing, marketing, delivering, and customer service. Maxis come
up with idea of built with SME and a logistics and transportation to integrate real-time
solution for logistics and transportation. Other than that, Maxis start with the system of
convenience to customer to ease customer to pay bills, top up for prepaid, hotlink
services without customer leaving their seat by secure online system payment and online
web.

There are three strategic options we proposed in this report: Market development,
Product diversification, and Strategic alliance. Based on the analysis and criteria we
suggest that Maxis should implement market development strategy. From the analysis we
found that there is increases number of tourist in tourism sector. Malaysia has received
foreigner arrival in recent year. The market is there for Maxis to touch. It is consider a
low risk strategy because it does not involve new product and technology. It only
required tailoring existing product to specific customer.
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 9.0 Appendix
Value Chain
Happy customer
Best network
To create many like
Believe that the network and moment with customers.
services that being provided is
quality and different from
competitors.

Key value

Innovative solution Best people

Thinking out of box and use new Need best people to deliver it.
technology to ensure always Need talent, retaining that can
lead infront attract customer

Strong community relation

Making a positive impact on society

especially within communities in which
can operate.