Maxis Mobile Phone Company of Malaysia Marketing Analysis

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1.0 Introduction

Maxis Communication Berhad (Maxis) is the leading mobile communications service provider in Malaysia with a subscriber base of 10.1 million as of Quarter 1 2008. Maxis want to provide the maximum in communications to customers across Southeast Asia. The company was founded in 1995 and first appeared on the Malaysian stock exchange in 2002. It went private again in June 2007 when Binariang GSM Sdn Bhd which is owned by Malaysian tycoon Ananda Krishnan (refer to Appendix 1), he bought Maxis for $4.5 billion. Maxis was granted communications licenses to operate a nationwide GSM900 mobile network, a domestic fixed network and an international gateway in 1993, and commenced mobile telecommunications operations in August 1995, and fixed line and international operations in early 1996. Maxis’ mobile service is offered under the Maxis brand for postpaid and Hotlink for prepaid. Maxis launched its 3G service Maxis3G in July 2005, and in September 2006, it became among the world’s first to use HSDPA, a high-speed upgrade of the 3G network, for a large scale rollout of residential broadband services.

Maxis’ growth story and track record of bringing innovation, excellent customer experience and value to stakeholders has won the company many awards over the years. Recently, Maxis was recognized by Frost & Sullivan as Service Provider of the Year (Malaysia) at the Malaysia Telecoms Awards 2008 and as Mobile Operator of the Year (Malaysia) at the Asian Mobile News Award 2008 in Singapore. (refer to Appendix 2)

With Maxis, you can be sure of services and technologies that help you stay ahead in your life, whether at work, at home or at play.

 


2.0 SWOT analysis

2.1 Strengths

The deal gives Maxis an opportunity to move into a rapidly growing market place, equipped with full management control and board representation. Gaining control of Aircel gives Maxis access to the number one mobile operator in Tamil Nadu and the city of Chennai. Maxis launched its 3G service of Maxis3G and HSDPA which is a high-speed upgrade of the 3G network.

2.2 Weaknesses

Earnings dilutive expected for the first two years, with break-even estimated in year three, and profitable only in year four or five onwards. At the initial stages, Maxis expands the network capacity to consume sizeable amount of profit with high financing costs. The broadband coverage of Maxis is not wide enough in some areas in Malaysia. This will pull down the demand of the broadband services for Maxis.

  1. Opportunities

Opportunities are the external factors that the company may be able to exploit to its advantages (ARMSTRONG, G., and KOTLER, P., 2009. Page395). There are opportunities for Maxis such as moving a product into a new market sector. For an example, Apple has given the distributor licenses to Maxis to launch iPhone in Malaysia. Maxis Broadband technology has been installed in new areas such as Pahang and Kelantan other than Kuala Lumpur that is useful for Internet users.

2.4 Threat

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Maxis is facing intense competition from other network operators because of the price, product, customer service and quality. Its major competitors are Digi, Celcom and U-Mobile. Some of its competitors are big players having larger resources and wider geographical presence than Maxis. These competitors are in a better position to handle the global meltdown as well as falling demand and remain competitive.


3.0 Marketing Mix 4Ps

The marketing mix is a set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix includes four Ps which ...

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