From the year of onwards, broadband Internet services, which enable faster and always-on connection to the worldwide web, offer more promising growth potential.
Bad news was, Siemens is now a sub-contractor to Motorola for network switching systems. Technology advanced leads fast industry growth and opporturnities, increase the competition among companies.
There is high exit barriers in this industry due to the high investment budget and responsible to customer will make campanies strive to survive in the industry.
Moreover, their supplier is from overseas. Bargaining Power of Supplier Generally, the telecommunications industry in Malaysia is dependent on imports for the majority of its network components as most of the network equipment cannot be sourced locally.
Often, the regulatory policies, the number and type of licences awarded by the Government are view as the entry barrier for the development of the industry. In future, Maxis believes that comparable equipment and support is available from other established suppliers.
They try to gain competitive advantage through low call rate and proce. Moreover, company in this industry will certainly compete on the call rates, package price and so on. The process is complex and high cost.
Threat of Substitutes There are many substitutes for mobile services such as a very traditional way- letter, fixed home line telephone, fax, and email. Customers are high price sensitivity, easy to switch brand.
To date, the Government has awarded eight mobile licences to operators in Malaysia. In addition, the introduction of equal access and the licensing of by-pass operators have further increased competition in the Malaysian telecommunications industry.
Maxis lead this telecommunication industry. Michael Porter Five Forces Entry Barrier a Base station Given the rapid deployment of base station sites required to support network growth, Maxis has a significant number of base stations which have been installed.
The advanced technology which required in the telecommunication industry incurred high capital investment and also needed professional knowledge in relevant sector to success in the industry. Maxis has been dealing with substantially the same group of suppliers since commencement of operations in Meanwhile, it is not so easy for a company to apply for a new licence to operate legally in this industry.
Maxis believes that the main competitive factors in the mobile services market are network coverage, service quality, pricing and brand. In addition, the pressure on the very low cost to use the phone calling through internet or communicate through online messenger had threated the mobile service industry, The attractiveness of internet services making it more affordable to the masses.
Prior to the liberalisation of the telecommunications industry in Malaysia, Telekom Malaysia had a virtual monopoly on telecommunications services in Malaysia.
Rivalry among Competitors Telecommunication industry in Malaysia is oligopoly structure nowadays. Maxis has been purchasing from these suppliers for approximately six years.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. The lack of approvals and the long waiting time had resulted a high entry barrier for new company. Michael Porter five forces are used to analyze the attractiveness of the telecommunication industry.
Maxis left only one main supplier- Trilsilco Folec. Each of them invests a lot on advertising to promote their product. Meanwhile, high level of competition between the major telecommunication companies that exists in current market leads to low switching cos for the buyer to change their mobile service provider.
In recent years, the Government has taken steps to introduce managed competition in the industry by awarding various telecommunications licences.
Meanwhile they are also some pending submission to wait approval from the local authorities. The existences of various regulatory such as interconnection fees between operators, call tariffs and the degree of foreign participation.
It was not easy copy or imitate by competitor. The bargaining power of their supplier becomes strong.Impact Of Globalization On Telecommunications Industry Economics Essay. Print Reference this.
Disclaimer: The telecom industry is also in a state of evolution under the impact of globalisation. If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the.
Free Essay: Introduction The way people communicate with each other is changing during the last years. The Telecommunication industry has become very. Introduction. The telecommunication industry is one of the world most competitive industries.
The key to becoming a leader in this industry is technology. Telecommunication industry is a fast growing industry all over the world, During the beginning era of mobile phones, call charges was highly expensive and it was not affordable to common public, during period of telecommunication industry become a highly competitive and mobile phones become a common commodity, this development gave extra energy to the telecommunication sector.
Free Essay: The telecommunications field is a vast field that contains terms and acronyms which can be confusing to those who are not familiar with the.
- Telecommunications Industry Environment Analysis Business Brief Telecommunication is basically any communication over a distance, either via telephone, wireless network, computer network, radio or other means-but conventionally it has been used for telephone service.Download