Management

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  • Topic: Broadband, Telecommunications, Telekom Malaysia
  • Pages : 6 (1955 words )
  • Download(s) : 84
  • Published : March 30, 2013
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PEST ANALYSIS
Politic
TM always has the priority when there is a new project provided by government. A good example is that Telekom Malaysia has been chosen by the government as its partners to embark on the High Speed Broadband (HSBB) project. This project didn’t go through an open tender process. Hence, other industry players didn’t have any chance to get a ride into the project. The government has awarded Telekom Malaysia Bhd subsidy of RM2.4billion for the project. The government limits the level of playing field for foreign players in the industry.

Economic
In March 2010, TM finally announced the launch of High Speed Broadband (HSBB). Telekom Malaysia has named its bundled triple play (broadband, IPTV and voice calls) as UniFi. High-Speed broadband project has brought positively impact to Malaysia’s economy. HSBB offers many benefits for consumers, SMEs (small and medium enterprises) and SOHOs (small office or home office). This will potentially allow better collaboration among businesses locally and globally, as well as improve productivity and overall quality of service on the Internet. It is expected to have a high multiplier effect for businesses, allowing for easier and more efficient collaboration that will drive productivity levels higher and enhance revenue generation. Social

As a leading responsible corporate brand, TM’s Corporate Responsibilities (CR) initiatives have long cultivated a culture of good governance and accountability, ensuring consistently strong performance to stakeholders, building customer loyalty as well as attracting and retaining talent. TM firmly believes that CR contributes towards building lasting goodwill as well as trust in the TM brand. In education, in line with nation’s strive towards human capital development, TM has been playing a major role in contributing to the country’s socio-economic development goals through a variety of platforms which include Yayasan Telekom Malaysia (YTM), training and staff development programmes as well as the establishment of Multimedia University. As an organization of which the main responsibility is to provide training and development at various levels for staff of TM and its subsidiaries, Multimedia College via the Training Unit and its  three main schools namely School of Engineering, School of IT and Multimedia, and School of Management. Besides providing training for employees of the Group, Multimedia College also offers its courses to external parties such as its suppliers, contractors, the armed forces and police personnel as well as other corporate customers.  Technology

Technology allows products and services to be made at a better standard of quality and it helps in saving cost. This could be proved when TM has successfully reduced their costs by replacing silo ed Customer Relationship Management (CRM) system with a streamlined platform based on IBM eServer™ p5 servers and Oracle Siebel V7.7 CRM software. Besides, IBM has also helped TM to deploy the hardware infrastructure by extending their functionality of new CRM system onto the web with IBM WebSphere® Application Server software. Besides, technology also offers customers and businesses more innovative products and services. For example the Unifi packages which has now providing the highest speed of internet connection to their customers. AmBank NexG is also one of the innovative examples too.

Michael Porter’s Five Forces
The Threat of New Entrants
In telecommunication industry, the threat of new entrants is low since there are many barriers in the industry. The barrier to entry into telecommunication industry is related to the government regulation and policy. Malaysian Communication and Multimedia Commission (MCMC) use to give license to the potential entrants to operate telecommunication business. However, MCMC has set up strict requirements and procedures to approve the application of new entrants. Furthermore, the government only gives the solely right for...
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