Market Pressure

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Market Pressure
* In this era, businesses faces lots of pressure to grow and compete and one of them are market pressure. ‘Market pressures come from global economy and strong competition, the changing nature of the workforce and powerful customer’ (Turban, E. et al 2007, pg 33).

I. Global economy and strong competition

(a) Global economy ‘refers to an integrated world economy with unrestricted and free movement of goods, services, and labour transnationally’ (Economywatch, 2011). As we can see and experience now, the world are coming together as one and company, like Maxis have to see how the world’s economy is doing to make decision regarding its company’s path and strategies. This is important as the company is facing strong competition from other company from the same industry locally. At the same, this also ensures that the company did not lack behind its competitor so that they did not lose out their customer, which can result in lower profit, market share and market power.

One of the factors that a company has to pay attention to is new found technology. Let us take an example, Third generation (3G) network was first offered in Japan as a pre-released by NTT Docomo in May 2001 then followed by SK Telecom from South Korea in January 2002 (Dciexpo, 2007). A few years later, Maxis follow this trend and became the first 3G phone network provider in Malaysia in July 2005 (Press Release Maxis, 2005). As we can see here, the global economy trend forces Maxis to improve and provide a better service to its users since 3G network is so well received not only in Japan but in the USA and Europe as well. 3G enable its users to video call, internet on the move, checking emails and so on. This decision was a good one from Maxis because about a year later, Celcom, another Malaysian mobile service provider also launches its 3G network service in mid of July 2006(Telegeography, 2006). This shows that there are strong competition between companies in this industry in Malaysia and let say if Maxis continue with its current Second Generation (2G) service, Maxis’s users will definitely change to Celcom as they provide better service and newer technology.

(b) There are many strategies that a company like Maxis can uses to deal with these issues. One of them is Electronic Commerce (E-commerce). E-commerce involves buying and selling goods and services, servicing customers and collaborating business electronically (Turban, E. et al 2007, pg 391). Now, Maxis’s customers can check their billing information using the internet and even pay them online with just a click of a button. This service proved to be much more convenient and useful as customers did not have to queue up and in the bank, which waste a lots of time. Customers can also change their personal details and check their accounts using the internet.

Other strategies that also use by Maxis are customer oriented strategy. This can be shown when Maxis launched M-Money Today, which shows that customer and their top priority. M-Money Today enable maxis subscriber to ‘transfer money to family or friends anywhere in Malaysia and purchase selected goods and services through mobile phone (Maxis Press Release, 2007). This plan also enables us to pay online for movie tickets, pizza and downloading mobile contents as well.

The two strategies above are good strategies to tied down existing Maxis customers and to attract new subscriber. Maxis are constantly updating its services and make their customers as their first priorities. This is important as happy customers will sure loyal to its company and will spread the goodness of the company to its family and friends.

II. The Changing nature of the workforce

(a) Either we realize it or not, workforce is becoming more diversified. Company like Maxis cannot...
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