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Maxis Communications Berhad

Paper Type: Free Essay Subject: Marketing
Wordcount: 3108 words Published: 25th Apr 2017

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1.0 Introduction

Maxis Communications Berhad is a mobile phone service provider in Malaysia. It was started in the year 1993. It uses the dialling prefix identifier of “012” , “017” and “0142”. Their mobile services are provided over the 900 & 1800 MHz GSM band and as July 2005, the 2100 MHz UMTS band. Maxis Berhad, with its consolidated subsidiaries (together, ‘Maxis’), is the leading mobile communications service provider in Malaysia with over 11.4 million mobile subscribers as of 30 June 2009. Maxis was granted licences to operate a nationwide GSM900 mobile network, a domestic fixed network and an international gateway in 1993. It commenced its mobile operations in August 1995 and launched its fixed line and international gateway operations in early 1996. Since its establishment, Maxis has been providing a full suite of services on multiple platforms to fulfil the telecommunications needs of individual consumers, SMEs and large corporations in Malaysia.

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Maxis’ mobile service is offered on a postpaid basis under the Maxis brand and via a prepaid format under the Hotlink brand. The use of these two distinct brands, underpinned by synergistic values, has enabled Maxis to develop its prepaid business successfully while maintaining growth in its postpaid segment.Maxis has also pioneered and led the Malaysian market in delivering innovative mobile products and services. It was the first to launch 3G services in Malaysia – known as Maxis3G – in July 2005, and in September 2006, it became among the world’s first to use HSDPA, a high-speed upgrade of its 3G network, to provide wireless broadband services. It was the first operator to bring the BlackBerryâ„¢ and Apple iPhoneâ„¢ smart phones to Malaysia. The company in April 2009 unveiled the first commercial NFC-powered service in Malaysia. Maxis provides enhanced postpaid packages to corporate and SME customers, based on its highly successful consumer postpaid plans. These plans are custom-made to meet the needs of enterprises, especially improved communications within and beyond their compound.

Maxis’ international gateway services include termination of traffic into Malaysia from international telecommunications companies, supporting Maxis’ own outbound international direct dial (IDD) traffic, collecting international transit traffic and bandwidth leasing services. Maxis presently maintains bilateral connections with more than 95 carriers in 38 countries and has capital investments in a number of submarine cable systems to carry its international voice and data traffic.

Maxis provides a variety of mobile communication products and services. They offer prepaid call plans, monthly subscription plans, International Roaming, MMS, WAP (over both GSM and GPRS), Residential Fixed Line services, Broadband Internet plans, and as of early 2005, 3G services to both prepaid and postpaid subscription customers. For business customers, Maxis offer VSAT services (satellite based communications) and BlackBerry based mobile services besides regular services.

Maxis also provides an online Music store for its customers to download multimedia content. Maxis most popular service is its prepaid brand Hotlink, which currently serves over 8 million customers in Malaysia. They are currently heavily promoting a new IDD 132 service, which offers cheaper calling rates mobile & landlines in selected countries, at a rate of 20 sen (roughly 6 US cents) per minute which is, at certain times for many subscribers, even cheaper than a local call.

Maxis’ significant growth and strong track record of bringing innovation, excellent customer experience and value to stakeholders has won the company numerous awards over the years. The latest awards include:

Malaysia’s Top Ten Companies: Ranked 1 – Asia’s 200 Most Admired Companies, The Wall Street Journal Asia, 2006

Asian Mobile Operator of the Year – Asian Mobile News Award, 2007

Fourth Most Valuable Brand in Malaysia – Brand Finance, 2008 and 2009

Service Provider of the Year (Malaysia) – Frost & Sullivan, 2008

Mobile Data Service Provider of the Year (Malaysia) – Frost & Sullivan, 2009

Recipient of the Asia Pacific Super Excellent Brand Award – Asia Pacific International Brands Summit Malaysia, 2009

Maxis’ vision is to bring advanced communications services to enrich its customers’ lives and businesses, in a manner that is simple and personalised, by efficiently and creatively harnessing leading edge technology, and delivering a brand of service experience that is reliable and enchanting. Maxis are currently intensifying its business into Indonesia and India. Become the local communications provider at there is one of the goals to be achieved. Currently, Maxis has acquired 51% stake in Indonesia and 74% equity interest in India. These acquisitions can help maxis to achieve a huge growth in its business.

2.0 Content

In the disposition of the army, Sun Zi emphasizes that those who excelled in warfare first made themselves unconquerable in order to wait the moment when the enemy could be conquered. To secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself. Thus one who excels in warfare is able to make himself unconquerable, but cannot necessarily cause the enemy to be conquerable. The opportunity of defeating the enemy is provided by the enemy himself, and if and only if we have the trained manpower to secure ourselves against defeated by enemy. Therefore, victory can be foresees without able being to do it. When we unable to defeat the enemy, then we have to mend our line of battle, plus defend the mother land from the attack of enemy. In contrary, we should be attacking instead of defending when we have the superabundance of strength. Those who excel at defense bury themselves away below the lowest depths of Earth. Those who excel at offence move from above the greatest heights of Heaven. Thus they are able to preserve themselves and attain complete victory.

Furthermore, it is not an acme of excellence if you can foresee the victory, even though everybody was cheered for the victory. Lifting a hair in autumn is not an indication of great strength. To be able to see the sun and the moon is not indication of clear vision. To be able to hear the roar of the thunder is no indication of sharp hearing. The victories won by a master of war gain him neither reputation for wisdom nor merit for courage. For he wins his victories without erring. Without erring he establishes the certainty of his victory; he conquers an enemy already defeated. Therefore, the skillful commander takes up a position in which he cannot be defeated and misses no opportunity to overcome his enemy. Thus, a victorious army always seeks battle after his plans indicate that victory is possible under them, whereas an army destined to defeat fights in the hope of winning but without any planning.

Those that the ancients referred to as excelling at warfare conquered those who were easy to conquer. Their victories were not marked by fame for wisdom or courageous achievement but were free from errors. One who is free from errors directs his measures toward certain victory, conquering those who are already defeated. Now, the elements of the art of war are first, the measurement of space; second, the estimation of quantities; third, calculations; fourth, comparisons; and fifth, chances of victory. Measurements of space are derived from the ground. Quantities derive from measurement, figures from quantities, comparisons from figures, and victory from comparisons. Thus the victorious army is like a ton compared with an ounce, while the defeated army is like an ounce weighed against a ton! The combat of the victorious is like the sudden release of a pent-up torrent down a thousand-fathom gorge. This is the strategic disposition of force.

The Relevant Theories:

Ensure Undefeated

Planning: The foundation of successful management

Planning is defined as setting goals and deciding how to achieve them. By others words, planning is coping with uncertainty by formulating future courses of action to achieve specified results. In Sun Tzu’s art of war, the tactical dispositions theory says that we must first has the invulnerable conditions before compete with other companies. Therefore, the benefits of planning help you check on your progress, coordinate activities, think ahead and cope with uncertainty. The uncertainty includes state uncertainty, response uncertainty and effect uncertainty.

Organizing:

Organizing is arranging task, people, and other resources to accomplish the work. This is important because to ensure the success of the organization’s goals. In Sun Tzu’s art of war, the tactical dispositions says that a leader should well organize their army, resources and battle before sending them to a battle field.

Time to offend and defend

SWOT Analysis:

Inside matters:

Strength: Attributes of the organization which are helpful to achieving the objective. Weaknesses: Attributes of the organization which are harmful to achieving the objective.

Outside matters:

Opportunities: External conditions which are helpful to achieving the objective.

Threats: External conditions which could do damage to the business’s performance.

In Sun Tzu’s art of war, the tactical dispositions theory says that we should analyze all of the matters above to ensure whether to attack or defend such as five important elements, like measurement, estimation of quantity, calculation, balancing of chances, victory. Firstly, the measurement of territory means we should consider the environment of the organization. Secondly, the estimation of quantity such as capacity of natural and human resources. Thirdly, the calculation by the leader to arrange the human and natural resources. Fourthly, the balancing of chances such as evaluating the chances of victory. Fifthly, by consider all of the above, and then you will foresee the victory.

Assumptions:

Tactical Dispositions explains the importance of defending existing positions until you can advance them and how you must recognize opportunities, but not try to create them.

We Cannot Control, So We Must See….

Conditions in the environment are going to reinforce some innovation and make them powerful. These conditions are beyond our control. They are not observation. We must ‘see’ them to discover momentum. Sun Tzu tell us where to look for signs of these trends.

In sales and marketing, the power of an idea is demonstrated by buying things. The secret to finding momentum is hidden in our sales report. In management, it is demonstrated by reducing cycle time or improving productivity. It is hidden in our management report. We must identify what is working in a meaningful way.

The Role of Competition

In any competition, our opponents play a key role in our strategy. We must watch and keep up with our opposition. In other words, we must know what they do and copy their best practices. While doing so, we look for ways in which we can surpass our competitors.

Sun Tzu teaches that we cannot create the opportunity for success.

Our opponents create the opportunity. We can only recognize the opportunity when it occurs. This demands special skill and training. When we see an opportunity, we must take advantage of it. Competition is not a fistfight. It is a game of chess. We keep up with the competition until they leave us with an advantage.

3.0 Discussions

Maxis Communication Berhad is one of the most famous communication services in Malaysia. It was started since 1995. It uses the dialing prefix identifier of “012”, “017” and “0142”. Besides, Maxis provides a variety of mobile communication products and service. They offer prepaid call plans, monthly subscription plans, global roaming, MMS, WAP, Residential Fixed Line services, Broadband Internet plans, and as of early 2005, 3G services to both prepaid and postpaid subscription customers.

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Nowadays, Maxis has faced many competitors in the same market area. For example, Digi and Celcom. However, Digi is the most challenging competitor for Maxis. In tactical dispositions, Sunzi emphasizes that before waiting for the opportunity of defeating the enemy, the good fighters such as the general and their army need to ensure themselves have the indefectible conditions. The opportunity of defeating the enemy is provided by the enemy himself, and if and only if we have the trained manpower to secure ourselves against defeated by enemy. Therefore, victory can be foresees without able being to do it. When Digi promoted the Digi Campus, Maxis decided to come out the tactical with Hotlink Youth Club. Digi Campus is a special promotion plan for students which offer the call rate is 15sen per minute while call for free to any digi networks after RM2 daily spent. This will cause a threat of losing customers to Maxis for a certain period. Maxis choose to defend but not counter-attack in the short term when facing the competitor challenging tactic because they realized the concept of defend when weak and offend when strong. It may take a longer time to Maxis to come out the better counter strategy to face the competitor. After completing a detail research and development, Maxis come out the Hotlink Youth Club plan which is promoted a lower call rate in 12sen per minute and valid for 4 years. By this, Maxis will be able to overcome the decreasing market demand from customers and attract more public to be Maxis users.

Besides, it is not an acme of excellence if you can foresee the victory, even though everybody was cheered for the victory. Sunzi theories stated that we should evaluate the chances of victory by estimating the degree of difficulty of the terrain and establishing the chances of victory against the enemy. In Malaysia, communication service market faces a large competition among the companies. Nowadays, many communication service companies enter the service market like U-Mobile and U-Tune. They also offer various kinds of competitive strategies and plans to survive in the market world. As a result, Maxis face many difficulties and not easy to stay stable in the existing market. In general, many customers are price elastic and sensitive to the market prices, they are easy to switch to other company. So, that is hard for Maxis to lock their loyal customers in market. Suntzu said, “he will knows the other side (the enemy) and know himself will not be defeated in a hundred battles.” Even though Maxis is facing the difficulties of many strong competitors, Maxis understand well their strengths and weaknesses. They always make use of their strengths to cover their weaknesses, so they have a strong competitive advantage and there are no opportunities for other competitors companies to strike their market size. They tried to offer plenty of special promotion to different level of customers to build they good image for the company.

As a result, by applying the Sun Tzu tactical disposition theory, the Maxis Company is a very well-organized company that has a great focal point on their keeping up their standards of creating quality of the communication service and keeping all customers, employees, business partners, and shareholders have a good services while using the maxis package and to stabilize their position in the existing market.

4.0 Recommendations

In Malaysia, there are several potential telecommunication companies such as Celcom, Digi, U-mobile, and Maxis. In order to stay ahead among competitors, Maxis should focus more on research and analyze their profitability level and market size. Maxis should find out some better tactics to enlarge their market size. For example, attract more customers by advocated more plans or choices for customers. Thus, this will lead Maxis to a higher profitability level.

In addition, Maxis should also improve in the aspect of advertising compared with DIGI. Nowadays, yellow color or yellow man has become a trademark of DIGI. This trademark has a strong impression of DIGI for public because of its creative and effective advertising ideas yet Maxis has losses in this aspect. To get improvement, Maxis has to build a deep image through creative advocating. As Master Sun said, “It is a need to ensure themselves has the indefectible conditions before there is an opportunity to defeat their enemy.”

Moreover, Maxis should know well their weaknesses in order to stay beyond in telecommunicating industry. They can get suggestion and feedback from their customer through questionnaire or survey to collect feedback to get improvement on their weaknesses.

Maxis is one of the potential company that has ability to stay ahead among competitors. “Those who are not able to win must defend, those who are able to win must attack” (Sun Tzu’s Arts of War), Maxis may achieve the final victory.

5.0 Conclusion

In business field, Sun Zi Art of War and Business Strategies are such an effective tactics for staying ahead from competitors. In disposition of the army chapter, we have learned about good fighters of old first put themselves beyond the possibility of defeat, and then waited for an opportunity of defeating the enemy. As a company that wanted to be succeed, they must be able to ensure that they will not be defeated by competitors, while they must wait for opportunity to achieve victory which depends on their competitors.

Furthermore, to achieve victory, we have to foresee on our resources and any other factors. We must able to defend and attack according to the circumstances. We must defend when we have inadequate recourses. Alternatively, we must attack when resources is adequate for success. In addition, if we have the ability to protect ourselves from attack, that can be considered as succeed.

In conclusion, Sun Zi Art of War is a useful tactics in business field which can be implemented in business to achieve a company’s goal in order to survive in cruel business war.

 

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