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Strive to bridge the digital divide, build the country, and improve foreignstatus.Maintain the highest level of transparency, integrity and professionalism.Together with all stakeholders, we will make Celcom Malaysia a quality brand, abrand that symbolizes freedom, ambition, confidence, energy, eternality, universality andglobalization. (Celcom official website, 2018)2.0.1 Situational AnalysisWith a business history of 20 years, Celcom has been established as atelecommunications service provider and has developed into a high qualitytelecommunications provider in Malaysia market. Tan Sri Jamaludin Ibrahim wasappointed as director / chairman of Celcom (Malaysia) Berhad on April 25, 2008(Malaysia). He is currently President and Group CEO of Axiata Group Berhad. (Celcomofficial website, 2018)2.1 Market SummaryTable 2.1 Five Forces Model (Michael Porters 1979)Page 3of 21Rivalry among existingcompetitorsThreat of newentrantsBargaining powerof buyersBargaining powerof suppliersThreat of substituteproducts or services
2.1.1Competitive ForceCelcom is highly competitive in the advertising industry at the local, regional andnational levels, making Celcom the market leader in Malaysia. Based on the salesstrategy developed by local competitors, Celcom Malaysia has improved its level ofcompetition by developing many telecom functions and providing quality services ata relatively high price. With the newly launched new telecom service provider (U-mobile), the competition in the telecommunications industry is fierce. Celcom hasreduced the cost of text messages from 25 cents to 15 cents and reduced call chargesfrom 35 cents per minute to 30 cents per minute. Many other competitive measuresare also expected to enter the market soon. (Williams & Ferrell 1997, p.600)There are new plan are introduced in market such as post plan, prepaid,anniversary/situational plan & celebration plan.2.1.2Barriers to EntryBasically in Malaysia, telecommunications services are not oligopolisticbusinesses. Once the company meets the requirements and is prepared to meet itsgovernment obligations, there is sufficient freedom to enter. There are manytelecommunications service providers in Malaysia, from local service providers tointernational service providers. This makes the industry a purely competitive market.Still, Celcom understands the need to satisfy customers and not only what they needtoday, but what they need in the future. By advancing technology, they make it difficultfor small companies to enter the market, creating barriers to entry for other smallcompanies. (Williams & Ferrel 1997, p.600)2.1.3Buying Power (Customer)In today's society, consumers spend less time working and leisure. The hallmarkof today's products is convenience and ease of use. In fact, if the product does not savetime and is not easy to use, the customer will completely ignore it. The same is true of theMalaysian market. The customer's "quality service - lower price" philosophy is still thekey to purchase. Learn that this is the basics of every industry. Many options have beenoffered and consumers in Malaysia usually offer the best service at the lowest price.