Strategic Management Process of Celcom

1317 words (5 pages) Essay

17th May 2017 Marketing Reference this

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The three stages of strategic management process consist of strategy analysis, strategy formulation, and strategy implementation. Strategy analysis is to analyze the strength of organization’s position and comprehend the major external environment factor it be able to effect those position. Strategy formulation is related with which future that the organization should go. For instance, establish the company’s mission, objectives, and decide between strategic alternatives. Last stages, strategy implementation need the businesses be adequate flexibility. When a strategy already analyzed and decided, the mission will then to interpret it into organizational action.

PEST analysis is a different simple equipment to help the Celcom discover and observe these weak signals and look forward of understanding the discontinuity or else the fracture shape the environment. Political analysis is Malaysia government published the telecommunications companies are to perform compulsory registration of all their prepaid cards. Because there are many crime cases happened via phone calls and SMS. Other than that, the unemployment rate is increase during the economic downturn because of retrenched. It also leads to the crime cases increased in Malaysia, therefore government started to hire workers to work in the public sector.

Then, economic analysis is Malaysia’s economic in last few years has been already be related to the world economic and also Asian economic. To go in the market the economies grow up is to stimulate extra investment and other companies. In addition to this, during the discoveries time, Celcom ever more become stronger and augment the sales and a lots consumers in Malaysia go for Celcom products and services.

Afterward, social analysis is the fundamental values of sensitivity, predilection and behaviors is the major cause that can influence Celcom products. Today mobile phone has become a society culture for all peoples. Nowadays, consumers like to SMS more, because they can convey message in cheapest way. Mobile phone and internet technology has become a tendency into new millennium. After that, technology analysis is consumers can top up their prepaid credit via internet transaction and also for postpaid consumers they can check their bill through online to save money and papers (go green).

Porter’s five forces analysis is

The bargaining power of buyers for Celcom is high price sensitivity. Because of the lower switch cost for buyers to change their mobile service there are high level of competition among the main telecommunication companies that survive in existing market. Customers will switch to other brand is Celcom products prices is too high. It mean Celcom customer will not loyalty to Celcom if customers know that other brand is give better benefit than Celcom. For instance, Celcom have brought out Celcom First Voice Business plan for business peoples. It help business people in a lot of way to save they money while phone talk. Celcom want to ensure their clients have the benefit of using Celcom services with lower price than other competitors.

Bargaining power of suppliers is high while the buyers have little selection and low while buyers have a lot of selection. For instance, Celcom tried to make their suppliers stay with them instead of leave and go for their competitors. The marketing strategic “More-for-more” is which suppliers offer organization for the high cost. In market of Malaysia, Celcom has over its competitors because of vested interest of the hand of market leaders in purchasing power.

Next, rivalry among competitors is high while there is fierce competition and low while there is not. For instance, Celcom is using innovation strategy to increase rivalry among competitors through collaboration with Vodafone Group, Asia Mobiliti Initiative (AMI), and Axiata Group Berhad who are the organization associations of Celcom. After that, because of Celcom joined AMI in 2005, the regional existence across Asia be strengthened. Therefore, to protected and enlarged in the each country markets and simultaneously increase profitability of the market share of Celcom. Other than that, Celcom are tried to increase the competitive advantage via low call rate. In telecommunication industry there is high exit barriers because of the high investment budget and to make companies struggle to subsist in this industry they should responsible to their customers.

Then, Celcom has low of threat of new entrant because they have some obstructions. For instance, to produce barriers to entry Celcom can through launching innovative products or by IT to offer excellent services. The subordinate of NEC Corporation is NetCracker Technology which collaboration with Celcom. Therefore, Celcom are capable to trim down operating costs, increase quality of services, and create greater consumer knowledge.

Furthermore, the threat of substitute products and services consult of substitutes, consumers will purchase products from others if your prices are high. The treat of substitute products and services of Celcom is high, because there are many substitute products and services in mobile industry. For instance, a lot of people phone calling, SMS, Facebook, and MSN to communicate with each other via online instead of use mobile phone to send. Therefore, it will also influence the profitability of Celcom. In other industries those different offered product and services serves the comparable needs.

Value chain analysis is an internal analysis that is used to examine the development of competitive advantage.

SWOT analysis is an organized grouping activity this is useful in makes out the internal and external forces that drive an organization competitive in its markets. The strength of Celcom is preserve a product differentiation strategy generates from a powerful market positioning, promise to high quality, and customized of products and services. There little revenue between well-compensated staff who are liked through consumers. The fairly large size of the employees further communication and fast reply to customer’s needs.

Next, the weakness is Celcom lost market share to Maxis. Based on the research of 2012, the market share of Celcom is 33% only, meantime the market share of Maxis at 39%. But Digi have only 27% market share. Other than that, because of the unfortunate niche market might be a competitive advantage for Celcom competitors to grow superiority over Celcom and this possibly will cause a significantly reduced client’s loyalty. For instance, major competitors of Celcom are Digi and Maxis. The weakness of Digi is users unable to send message to the recipient in African sometimes.

Then, the opportunities are Celcom growth in global telecommunication industry. Celcom declare to have the most widely and the largest part wide coverage all over the country, contrast to other cellular services in Malaysia. Nowadays, many of Malaysians finding way to keep in touch with each other, thence Celcom’s reputation and quality of services could help Celcom to attract more consumers by of customer relationship and the loyalty of brand.

Next, threats of Celcom are those products and services which are high cost will be the competitive advantage to their competitors over consumers, by the way of carry out the low cost quality products and services. After that, through promotional items the professional advertisement it’s rely on gizmo and the new and distinct of ideas. Based on the research the product life cycle are considerably short. The progress of fast technological might influence the product life cycle faster, and need for improvement is increasing and it would affect the less quality products in lower sale.

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