Celcom Malaysi Essay Example

Celcom Malaysi Essay Celcom is one of a member of the TM group of companies. Being one of the very few companies in Malaysia to originally obtain a cellular phone license, it successfully introduced mobile telephony in Malaysia through its ART-900 service, using first generation NMT-900 technology. It uses the dialling prefix identifier of 013, 0148 and 019. The mission and vision; * To delight our customers. * To build a profitable enterprise that maximizes investors return. To empower, develop and reward our people, to become Malaysia’s preferred employer. * To build win-win relationship with all our business partners, based on mutual trust, respect and support * To work to bridge the digital divide, to build our nation and to enhance its standing abroad. * To maintain the highest levels of transparency, integrity and professionalism. 1. 1Products Celcom continues to lead the industry in product innovation; and in 2002 Celcom’s products became more than ever. In addition to introducing three new prepaid packages, the Company introduced other innovative product offerings such as MSN Mobile Hotmail, which enables mobile phone users to receive e-mails via their mobile phones. Another innovation was Celcom’s Unified Messaging Service. This service gives customers access to all their messages, whatever the format, via whatever communications device they are using. In 2002, Celcom also became the first Malaysian communications company to offer Chinese content SMS. In addition, Celcom successfully introduced, on a trial basis, both Multimedia Messaging Service (MMS) and General Packet Radio Service (GPRS). To delight customers and further bridge the digital divide, Celcom will continue to be aggressive in introducing meaningful products and services; and already has a series of advanced business mobile communications solutions and products in the pipeline. The Company will make extensive use of market research to ensure that the products, contents and services it develops meet real customer needs and desires. We will write a custom essay sample on Celcom Malaysi specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Celcom Malaysi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Celcom Malaysi specifically for you FOR ONLY $16.38 $13.9/page Hire Writer With the imminent merger of the businesses of Celcom and TM Cellular, 2003 will see a pooling of resources to achieve economies of scale which will boost our competitive edge in an increasingly saturated market. Celcom will continue to upgrade systems and equipment to cater to an increased customer base. 1. 2Services and Coverage Celcom claims to have the widest and most extensive coverage nationwide, compared to other cellular services in Malaysia. Celcom claims its dual-band GSM (900/1800 MHz) coverage has reached over 97% of Malaysia’s populated area in 2006. As of 2006 Celcom is offering both 2. 5G and 3G services on its Minutes postpaid and Xpax prepaid brands. Current customer base stood at 7. 8 million, with blended ARPU (Average Revenue per User) stood at RM65. Celcom claimed a 95% nationwide mobile service coverage with 3G availability in most of Klang Valley, Johor Bahru, Melaka, Kulim and Penang. 1. 3History When the cellular phone market was opened up in 1995, Celcom upgraded to the GSM900 service and quickly grew to become the largest mobile phone company in Malaysia until it was overtaken by Maxis. During the Asian financial crisis in 1997, Celcom’s owner, Tan Sri Tajudin Ramli suffered a debt crunch, and his shareholding in Celcom was seized by Danaharta, the national asset restructuring company. Failure to resolve his debts resulted in the controlling stake in Celcom being sold to Telekom Malaysia, the government-owned incumbent fixed line operator in 2003. Telekom Malaysia proceeded to merge Celcom with its own mobile-operator subsidiary TMTouch through a reverse takeover of TMTouch. Celcom was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia Berhad, it has since remained private. Owing to the bad management of its former management Celcom was as found liable by an arbitration panel in Switzerland for infringing an agreement signed with Deutsche Telekom AG’s unit, DeTeAsia in 2002. The tribunal ruled that Celcom was liable to pay DeTeAsia US$177. 2 million in principal plus US$16. 2 million in interest as well as other legal and arbitration costs. This works out to a tidy sum of about RM740 million. Leaving Telekom to intensify its efforts at recovering monies from Celcom’s previous owners for their misdeed. Only then will TM be able to fully exorcise itself from the haunting of Celcom’s tumultuous past. 1. 4Current Developments Celcom is currently doing nationwide promotion using power icons like including international footballers Steven Gerrard, Michael Owen, Ryan Giggs and Robert Pires and Chinese entertainers JJ Lin and Wang Lee Hom, as well as local actress Maya Karin. Celcom is the Malaysian partner of the Vodafone mobile community. Celcom current CEO, Dato’ Seri Mohammed Shazalli Ramly, has been with Celcom since 2005. On September 28, 2007, Telekom Malaysia announces a revamp of its mobile communication units which includes Celcom. The revamp plan was to group Celcom under the TM International, which houses other TM regional mobile units and emerge it as a separate business entity. The restructuring exercise should complete by Q1 2008 and the new business unit will be listed on the Kuala Lumpur Stock Exchange by Q2 2008. 2. 0 THE STRENGTH OF THE COMPANY A SWOT analysis is a structured group activity that 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. 2. 1The strength of the company 1. Celcom maintains a product differentiation strategy resulting from a strong market orientation, commitment to high quality, and customization of products and services. 2. There is little turnover among well-compensated employees who are liked by customers. The relatively big size of the staff fosters communication and quick response to client’s needs. . A long-term relationship with the primary suppliers results in shared knowledge of the product’s requirements, adherence to quality standards, and a common vision throughout the development and production process. 4. The high percentage of sales, suggest a satisfied customer base as well as positive word of mouth, which generates new business per year. 5. Be ing the oldest telecommunications service provider in Malaysia, has given celcom a competitive edge and increased customer’s trust and loyalty to the brand. 2. 2The weakness of the company 1. Celcom’s current facilities are crowded; there is little room for new employers or equipment to fit into the company. 2. Celcom is reactive rather than assertive in its marketing efforts because of its heavy reliance on customer’s reaction for product satisfaction. 3. While the staff size improves growth and communication, it also impedes commitment on the side of the staff and lack of specialization. 4. Both the product line and the client base lack diversification. Dependence on current recorder rates could bleed complacency, invite competition, or create false sense of customer satisfaction. Development of a product that would provide better quality service by the competitors would probably put Celcom out of business. 5. The non-seasonality of the products and services creates bottleneck in productivity and cash flows, places excessive stress on the personnel and strains on the facility. 6. The poor niche market could be a competitive advantage for their competitors to gain an advantage over them, and this could lead to a dramatic decrease in customer’s loyalty. 7. High cost of products and service could alter the buying power of the consumers, especially in this time of global recession. . 3The opportunities for the company 1. Advertisement in Malaysia alone exceeds 200 million Malaysian ringgit annually. More than 20 million ringgit is spent on specialty advertisement which is the potential for celcom’s growth. 2. Celcom is currently the Malaysian partner of Vodafone. 3. Celcom is currently doing nationwide promotion using power icons like including inter national footballers Steven Garrard, Michael Owen, Ryan Gigs and Robert Pires and Chinese entertainers JJ Lin and Wang Lee Hom as well as local actress Maya Karim. 4. Celcom currently has the widest 3G and HSDPA coverage in Malaysia since its launch on 17th may, 2005. 5. Celcom provides many products and services that suites different customer needs, ranging from economic, business, and family and leisure satisfaction. 6. The director and manager of the company, Dato’ Sri Jamaludin Ibrahim is currently working with the company for the seventh year, this is different when compared with other telecommunication service providing companies and with his full experience, he has helped guide celcom to a resting edge with quality management. 7. As more and more Malaysians look for ways to keep in touch with each other, celcom’s popularity and quality services has helped draw more customers to the company through customer relationship and brand loyalty. 2. 4 The threats for the company 1. Reengineering, right-sizing and outsourcing trends in management may alter traditional channel relationship with brokers, dealers, and distributors or even lead to elimination of the channel. 2. Specialty advertisement through promotional items relies on gadgetry and ideas that are new and different. As a result, product life cycle may be quite short. 3. Completion from other telecommunications service providers is strong. 4. High cost of products and service would be a competitive advantage to their rivals over customers, through implementing low cost quality products and services. 5. There are no barriers of entry and this could be a great threat because it could make new fast productive companies to come into the market and try to gain a stand of their own. 6. Fast technological advancements would result in faster product life cycle, increase the need for improvement and might result in low sale of less quality products, or products with less technological features. . 0 RECOMMENDATIONS By matching strength to opportunities and converting weakness and threats; * The acceptance of technological advances and the desire to control time creates a potential need for technologically rich products with varieties of features. * Celcom must modify its management hierarchy, empowering its employees through a more decentralized marketing orga nization. * Celcom should consider diversifying its product line to satisfy new market niche, as well as developing products that are seasonal to boost sale. Celcom should consider surveying its current customers and its customers’ client to better understand their needs and changing dreams. * Have gone into partnership with Vodafone, celcom should consider establishments in its neighbouring countries, especially the lower technologically advanced ones like Vietnam, Laos, Myanmar etc. 4. 0 CONCLUSION In my opinion, Celcom have done well for their market. They also have controlling interest in mobile operator in Asian. They got the cheapest plan for subscriber with minimum budget. They also improve quite a lot in wider coverage.