Celcom Analysis

Its currently in the mobile telecommunication services industry. Celcom is the oldest telecommunication company in Malaysia. CELCOM was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia Berhad, it has remained private. CELCOM is the Malaysian partner of the Vodafone mobile community. CELCOM current CEO, Dato¶ Seri Mohammed Shazalli Ramly , has been with CELCOM since 2005. His contractexpired in 2007 and has been renewed for another 3 more years.

TM International has been renamed as AXIATA as part of a telecom consortium in the south east Asia. Its Stock Exchange code is AXIATA. COMPANY¶S MAIN COMPETITORS AND MARKET SHARE OF EACH PLAYER The main competitors of CELCOM are MAXIS Telecommunication. Since its inception in 1995, Maxis has grown from strength to strength to its current position as Malaysia¶s leading mobile operator, with the largest customer base of over 11 million people. Maxis have earned many accolades locally and internationally.

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Maxis Berhad, the country¶s largest mobile phone company by market shares, said its net profit rose 28% for the third quarter ended September 30 2009. For CELCOM ,in the 9 month period, they revenue rose 11. 9% to RM 4. 63 billion while net profit increased 17. 7% to RM 1. 13 billion.

Its third quarter net profit of RM 404 million is the highest quarterly net profit in its history. SWOT ANALYSIS OF THE COMPANY A SWOT analysis is a structured group activity that¶s useful in identifying the internal and external forces that drives an organization competitive in its markets.SWOT is an acronym for Strength, Weakness, Opportunities and Threats. y Strength = Cheapest postpaid plan ? This plan is most suitable for users who are only allocated with minimum budget for the monthly phone bill. ? Offers you the lowest postpaid plan in Malaysia with commitment fee as low as RM20 per mont 2 = Larger Asian telecommunication company ? Celcom Axiata has controlling interest in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. In addition, the Malaysian grown holding company has states in non mobile telecommunication operations in Thailand and Pakistan.

y Weakness = Market share ?Celcom lost market share to Maxis. Celcom only subscriber share at 31% , meanwhile Maxis was able to maintain its subscriber share at 42%. While Digi subscriber only at 27% 3 y Opportunities = Growth in global telecommunication service industry ? Celcom claims to have the widest and most extensive coverage nationwide, compared to other cellular services in Malaysia. ?Expansion of users = Initial public offerings in other countries  Success in Sri Lanka and Pakistan ? Also success in 10 other countries y Threats = Subscriber War Business Practices ? To respond to user needs, the industry engaged in subscriber war business practices. Three years ago that Celcom was still very much a struggling entity.

It was on the verge of decline in terms of revenue and subscriber base. = Enter the Smartphone war ?Celcom CEO, Dato¶ Seri Mohammed Shazalli Ramly said the company¶s infrastructure can support the device but a big hurdle to securing the iPhone deal is the commercial terms that both parties cannot agree o 4STRATEGIES TO REMAIN COMPETITIVE IN THE INDUSTRY Double its mobile broadband customer base to one million by end- 2010 y will focus on pushing its mobile broadband service to sustain its quarterly growth streak y Its primary target now is to double its mobile broadband customer base to one million by end-2010 from 475,000 in the third quarter ended September 30 2009. y In the third-generation (3G) mobile broadband space, Celcom currently leads other mobile operators in terms of subscriber base. Maxis Bhd has fewer than 200,000 subscribers as of the third quarter of this year. Its third quarter net profit of RM404 million is the highest quarterly net profit in its history. y They will be implementing new synergies focusing on customer touch points, human capital and strengthening position with renewed zest and commitment.

This will be done concurrently with an accelerated broadband push and continued ‘smart spending’ cost management. Opportunities of the new telcoscape y The integration of Celcom and TM Cellular has expanded and enhanced our network, interms of geographical coverage and network quality.In line with the strategy to providethe best network quality to the customers, they have allocated a substantial portion of theannual capital expenditure to improve the capacity and quality. y Long-term strategy is to expand the business beyond mobile voice communications and into new market segments to access new revenue streams. To meet the ever-changing and sophisticated needs of our customers, we will continue to introduce more mobile data services and solutions to keep people connected anywhere, anytime.

5 OPINION AND SUGGESTIONS TO IMPROVE THE OVERALL PERFORMANCE In my opinion, Celcom have do well for their market.They also has controlling interest in mobile operator in Asian. They got the cheapest plan for subscriber with minimum budget. They improve quite a lot in wider coverage also. I also like to suggest on Blackberry package that they offer to users.

For young adults, I believe a monthly RM50 commitment fee for voice call will suffice. Celcom price for monthly subscription fee at RM118,meanwhile Digi at RM108 and of course Maxis is the expensive about RM200. About the Term and Condition on Blackberry Plans, I hope they will state a clearly Term and Condition compared to Maxis. They have very detailed Term and Condition.