Maxis deploys Internet Protocol based technology use of DSL technology. 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. It was not easy copy or imitate by competitor. ) Regulatory Policies Telecommunication operating landscape is largely shaped by the country’s regulatory environment. Often, the regulatory policies, the number and type of licenses awarded by the Government are view as the entry barrier for the development of the industry. The existences of various regulatory such as interconnection fees between operators, call tariffs and the degree of foreign participation. Meanwhile, it is not so easy for a company to apply for a new license to operate legally in this industry.
The process is complex and high cost. 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 resourced locally. Maxis’ networks utilities standard equipment which is available from a limited number of suppliers. Most of the GSM equipment for Maxis’ mobile network operations is purchased from Motorola, Siemens and Triassic Foley, and Maxis maintains close working relationships with its key network equipment suppliers.
Maxis has been purchasing from these suppliers for approximately six years. Maxis also purchases certain network components from various other key suppliers, including Nortek and Cisco. Maxis has been dealing with substantially the same group of suppliers since commencement of operations in 1995. Bad news was, Siemens is now a sub-contractor to Motorola for network switching systems. Maxis left only one main supplier- Trillion Foley. The bargaining power of their supplier becomes strong.
Moreover, their supplier is from overseas. In future, Maxis believes that comparable equipment and support is available from other established suppliers. Bargaining Power of Buyer Information technology increase the bargaining power of buyer, high available of information make it easier for buyer to evaluate sources of materials about telecommunication. There are many alternatives product such as fax, email, and internet which enhance the bargaining power of buyer to the mobile service provider.
Meanwhile, high level of competition between the major telecommunication companies that exists in current market leads to low switching coos for the buyer to change their mobile service provider. Customers are high price sensitivity, easy to switch brand. There are many substitutes for mobile services such as a very traditional way- letter, fixed home line telephone, fax, and email. From the year of 2000 onwards, broadband Internet services, which enable faster and always-on connection to the worldwide ebb, offer more promising growth potential. N addition, the pressure on the very low cost to use the phone calling through internet or communicate through online messenger had threaded the mobile service industry, The attractiveness of internet services making it more affordable to the masses. Rivalry among Competitors Telecommunication industry in Malaysia is oligopoly structure nowadays. Maxis have two main competitors, they are Cellos, Digit. Maxis lead this telecommunication industry. They are largely compete on differentiate their product and services on how to improve their features and implementing innovation.
