Maxis Communication Berhad

Introduction

Maxis Communication Berhad is a leading communications provider in Malaysia, which through its subsidiaries provide mobile, fixed line and international telecommunication services in Malaysia to over 13million individuals, families and businesses (Maxis.listedcompany, 2016). The company also provides wireless multimedia related services, Internet and broadband services. Formerly known as Binariang Berhad, the company owns, maintains, builds and operates radio facilities and associated switches. The Kuala Lumpur, Malaysia based company was founded in 1993 and is a subsidiary of Binariang GSM Sdn. Bhd. As customers increasingly immerse in an ever-expending universe of connected application, the company is working towards providing an unmatched end-to-end Internet experience on the most advanced cellular network that encompasses 3G and 4G LTE technologies (Maxis.listedcompany.com, 2017).

In 2015 the company’s performance improved from the previous year despite the challenges faced by the company. Its service revenue rose from RM8.2billlion to RM8.5billion that is by up to 3.8% and profit after tax in creased by0.99% from RM1.9billion to RM2.0billion. Maxis is with the vision to be admired for its excellence in every aspect of its business. It aims to achieve its vision by excelling in dealing with customers as well as having excellent branding and networking strategy. The company emphasises on three core values that are positivity, passion and collaboration to achieve its vision. This report will analyse the company’s current marketing strategy and provide an implementation plan that will allow Maxis to strengthen and further enable them to compete with other telco’s in the region.

Problem statement

In the past year, Maxis has found itself in a fierce row with consumers for its unfair mobile price plans and price competition from its rivals that have resulted in many unsatisfied users switching to its rivals Celcom and Digi (Malaysiakini, 2016).

The world has seen the meeting of two powerful concepts that are mobile and Internet that has led consumers to use their mobile phones to perform most of their task and data consumption is relatively high. While Maxis’s postpaid service revenue in 2016 was relatively stable at rm3931 million (RM3923 million in 2015), its prepaid service revenue declined by 3.7% to RM4018million (RM4137million in 2015) due to lower subscription base as a result of intense price competition (Maxis, 2017). Less attractive offerings has led customers to leave for other telecommunication companies that offer more attractive offerings. Although as of end 2016, Maxis EBITDA margin was 52.1% an increase by 0.7% from 51.4% in 2015, the company’s revenue was flat at RM861 billion in 2016 from RM860billion in 2015.

Objectives