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Master of Business Administration

Strategic Management
And Business Policy


Strategic Analysis of MAXIS Broadband

Written by :
|Beh Yi Shan, Nicole |3685456 | |Ng Kai Ning, Caryn |3841376 | |So Mee Chen, May |3841366 | |Wong Ling Yee |3841364 | |Yip Zhi Fai, Ray |3685346 |

Prepared for :
Dr. Leo Fredericks
Dr Colin Higgins

Date :
12 December 2009
Table of Content


1.2Company Overview1

1.3Key Business Segments1

1.4Mission and Vision1

2.0External Environment Analysis2

2.1The General Environment2

2.2Industry Analysis6

3.0Internal Environment Analysis8

3.1Sustainable Competitve Advantage8

3.2S.W.O.T Analysis10

3.2.1 Strengths10

3.2.2 Weaknesses11

3.2.3 Opportunities12

3.2.4 Threats12

4.0 Strategic Options13


4.2Strategic Alliance14

5.0 Recommendation15

6.0 Conclusion15


Table of Figures
Table 2.1. 4
Figure 2.1 5
Table 3.2 11

1.1 Objective
The objective of this report is to derive a strategy option for Maxis Broadband based on the external and internal environment analysis. 1.2 Company Overview
With 11.4 million mobile subscriptions, representing 40.0% of the estimated 28.5 million mobile subscriptions in Malaysia as at 30 June 2009, Maxis is the top mobile communications service provider in Malaysia by customer base and by revenues from Malaysia. Maxis gained revenue of RM4.243.8 million in year 2008 (Maxis Berhad Prospectus, 2009). 1.3 Key Business Segments

Mobile service, fixed line services and international gateway services are the 3 business segments which Maxis’ involves. Maxis Broadband, named on 12 July 1999 was previously known as Bina Sat-Com Network Sdn Bhd which was incorporated in Malaysia under the Act on 12 February 1992 as a private limited company. Maxis Broadband main function is as an operator of a national public switched network and a provider of internet and internet application services which includes owning, maintaining, building and operating radio facilities and associated switches. Maxis Broadband does not have any associated company and has a wholly-owned subsidiary, Maxis Online (Maxis Berhad Propectus, 2009). 1.4 Mission and Vision

A broad statement of strategic intent is important to begin the process of creating a mission and vision as it represents the future of the organization (De Kluyver, 2000, Pearce & Robinson, 2007).

Maxis’ vision is
“to bring advanced communications services to enrich its customers’ lives and businesses, in a manner that is simple and personalized, by efficiently and creatively harnessing leading edge technology, and delivering a brand of service experience that is reliable and enhancing.” (Maxis Berhad Prospectus, 2009) Maxis define themselves as “Simple, Trustworthy, Creative” to serve their customers better. (Our vision, 2009)

2.0 External Environmental Analysis
A review of the company’s external environment is a pre-requirement to succeed in designing a strategy that is fit with the company’s situation (Thompson, Gamble & Strickland, 2004). The PESTLE and Five Forces concepts are used to analyse external business environment.

2.1 The General Environment
Political Segment
The political segment symbolizes the political influence towards an organisation. When there’s a political change, competition will arise through the changing rules (Hanson et al, 2008). David Wong, chairman of the Association of the Computer and Multimedia Industry of Malaysia (PIKOM) said that government has...
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