The purpose of this plan is to make recommendations to improve on the current marketing strategy of Packet One Network (M) Sdn Bhd (P1 WIMAX). This report will emphasise on the various marketing strategies used, issues faced and propose recommendations.
BACKGROUND OF P1 WIMAX
Packet One Network Bhd which is a subsidiary of Green Packet Bhd and was awarded a license from Malaysia Communications and Multimedia Commissions(MCMC) to provide wireless broadband service using WiMAX(Worldwide Interoperability forMicrowave Access) technology and had launched P1 WiMAX in August 2008. P1 WiMAX had position itself as the 4G technology which is superior to current 3G service where it employs aggressive advertising and promoting strategy to build their brandname and boost their market share. P1 WiMAX had more than 80000 subscribers in its first twelve months of operation with only 30% coverage area in Malaysia and now, in January 2011 it has 280,000 subscribers.
Malaysia is a suitable market environment for broadband development for the following reasons: (http://wwwen.zte.com.cn/en/solutions/wireless/wimax/200912/t20091217_178727.html, access date: 20 Oct, 2011) 3.1
The country is currently having low broadband penetration but high personal computer peneration and fast broadband growth rate. 3.2
More than half of the households uses fixed line. The lack of wireline has already become the bottleneck of broadband growth. 3.3
Malaysia has comparatively high GDP per capital, most of the community can afford the broadband service. 3.4
Due to high mobility of community, mobile or wireless broadband requirement is already in the mature stage and on the increase year after year.
PORTER’s 5 FORCES MODEL
Porter’s 5 Forces Model is being used to verify P1 WIMAX attractiveness. 4.1.1 Competitors
P1 Wimax close competitors are Maxis Broadband, Celcom Broadband, Digi Broadband and Redtone (especially in East Malaysia) . These broadband companies offer various attractive packages and internet speed with high demand from customers.
Threat of New Entrants
It has low errants due to high investment and complicated technology and network system in Malaysia. Currently, there are only four WIMAX licences given out ie P1 Wimax, Redtone, YTL e-Solution and Asiapace Dotcom Sdn Bhd. Compounded by limited suppliers that can can support broadband services in Malaysia. However, since the market is growing fast, it may attract new entrants into the market. There are 17.5 million internet users as of April 2011, where 5 million broadband users, 2.5 wireless broadband users and 10 million 3G subscribers (www.Malaysian wireless.com)
Bargaining Power of Suppliers
P1 Wimax is experiencing low bargaining power with supplier because there are not many suppliers providing materials or telecommunication equipments ie software, network and communication towers in Malaysia. Currently, there are only a few suppliers such as Green Packet, Huawei and Cisco. 4.1.4
Bargaining Power of Buyers
Since there are many competitors in the market with low and attractive competitve pricing and product , customers can high bargaining power since they can easily switch to lower cost in other broadband services.
Threat from Substitute Products
P1 Wimax face a variety of threats such as customers choosing wireless internet service ie Streamyx or free WIFI at Starbuck café and other eateries.
P1 Wimax uses Wimax technology and there are only four WIMAX licences approved by the government and currently they have not fully utilise the WIMAX wireless service and will be a threat once they build up their capabilities and start competing in the market share with P1. For Example : Redtone has started to expand its coverage in East Malaysia in 9 March 2011 (www.redtonewimax2u.com)
The 3 biggest competitors in terms of...
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