Q1.

Penetrating into the mobile broadband, upgrading to 4G network and increasing

data segment are now focus of Axiata. Analyse and discuss the strategic
directions of Axiata in the local and international markets and segments within
these markets. With reference to the analytical models what are your opinions on
Axiatas strategic plans

History of Axiata
Axiata Group Berhad (Axiata) is an Asian company that invests in the
Telecommunication sector and has controlling stake in telecom companies in
Malaysia,Indonesia, Sri Lanka, Bangladesh and Cambodia and significant strategic stakes
in India, Pakistan, Iran, Thailand and Singapore. Axiata Group Berhad (Axiata), previously
TM International Berhad, is one of the leading telecommunication companies in Asia. The
company focuses on servicing high growth low penetration markets which are emerging.
The company is engaged in provision of wide range of telecommunication and consultancy
services through its subsidiaries across 10 countries in Asia.
In their media release in 2012, it was announced that Axiata had over 200 million
subscriber across Asia and a Group revenue of RM16.4 billion in 2011. It was also reported
that the company provided employment to 20,000 people in 10 countries.
The Group's mobile subsidiaries and associates operate under the following brands
- Celcom in Malaysia, XL in Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in
Cambodia, Idea in India and M1 in Singapore.
Axiata was awarded the Frost & Sullivan 2009, 2010, 2011 and 2012 Asia Pacific
ICT Award for Best Telecom Group and the Telecom Asia Best Regional Mobile Group
2010 and 2011 for its operations in multiple Asian markets.





Aixata Brand Value
Principled in how we conduct our business
Collaborative with consumers, employees, and business partners
Excellence in how we share innovation and efficiency with every
operating company and every customer
Adaptive to new situations and diverse cultures
Innovative in how we improve our work and adopt new technolog


















Group Management Team






Group Corporate Structure










What is mobile broadband 4G?
Mobile broadband is the marketing term for wireless Internet access through a
portable modem, mobile phone, USB wireless modem, tablet or other mobile devices.
(http://en.wikipedia.org/wiki/Mobile_broadband, n.d.)
4G is a wireless network that will substitute the current 3G networks. The 4G
technology is designed for deliver faster speeds and it is supposed to be four to ten
times faster than the 3G technology. 4G technology would enables IP-based voice, data
and streaming multimedia at higher speeds and offer at least 100 Mbit/s with high
mobility and up to 1GBit/s with low mobility. 4G can be best described in one word
MAGIC, which stands for Mobile multimedia Anytime Anywhere Global mobility
support, integrated wireless, and personalized services.

Mobile subscribers forecast



(slideshare.net, n.d.)
Generations of Mobile Broadband
(http://en.wikipedia.org/wiki/Mobile_broadband, n.d.)
















Celcom
Celcom Axiata Berhad, is the oldest mobile telecommunications company
in Malaysia. Celcom is one of a member of the Axiata group of companies. Being one of
the very few companies in Malaysia to originally obtain a cellular phone license, it
successfully introduced mobile telephony in Malaysia through its ART-900 (Automatic
Radio Telephone) service, using first generation (analogue) ETACS (Extended Total
Access Communication System) specifications of the United Kingdom, a derivative of
the US-AMPS (Advanced Mobile Phone System) technology.
Celcom is the country's premier and most experienced mobile
telecommunications company with close to 12 million customers. It is also the leading
mobile broadband service provider in Malaysia with over 937,000 subscribers. Celcom
provides prepaid and postpaid mobile services and leads the industry with mobile
broadband services in Malaysia.
The widest network coverage in the country, its 2G and 3G networks covers
95.0% and 81.7% of the population respectively, it continues to invest in network
coverage, capacity and performance, and intends to maintain its technology leadership
and position as the country's best mobile service provider.





3 key strategic Environments
The below figure shows, strategic planning with an analysis to understand Axiata 3 key
strategic environments namely
a) External Environment
b) Industry Environment
c) Internal Environment

a) External Environment
External Environment is defined as Conditions, entities, events,
and factors surrounding organization that influence its activities and choices,
and determine its opportunities and risks.
PESTEL analysis
This section will analyzed the political, economic, social, technological, legal and
environmental structure that affects telecommunication industry.
Axiata
Political
a) Prolonged Internal Political Stability
b) Strong Government Support
c) Discourage the usage of cell phone in school
Economy
a) Globalization
b)High Inflation
c) Globalization

Environment
Green technology has always been given by celcom in prevention on hazardise adiat
in the Telecommunication technology
Social
High Literay rate
Malaysias Literacy Rate for 2013 was at 93.1% defining that majority young
Malaysia 15 years old can read and write. This is good news to telecommunication
industry as literacy leads to knowledge hunger. With the rapidly improving of
telecommunication and internet connectivity, Malaysian spend more time and money for
internet online 24/7 and keep in touchmore often through conveniently cheap telephone
calls and texting.
Higher Standard of Living among Malaysians















Industry Analysis perspective
The buyers in mobile phone market grew by 23, 5500 and the market trend in
increasing. In the 3G usage are also increasing 25% in year 2011.
This is impact of the increasing usage of Blackberry, Iphone, ipad, Samsung and others
smartphones or tablets.
It is a competitive environment where 3 major players are competing each other
capturing majority of the market share where Maxis capturing 42%, followed by Celcom
31% and thirdly is Digi with 27 % in market.










PORTER 5 FORCE
Threat to new entrance
a) High amount of capital
b) Government
c) Regulation
d) Brand Loyalty
e) Product Offered
Determine OF Supplier Power
a) High Number of supplier
b) Lock in supplier strategy
Threat to substitute goods
a) Switching Liability
b) Low price and rate
Determine of Buyer Power
a) Lower operating Cost
b) Smart Spending
Rivalry among Existing Firms
a) Strong Alliance
b) Government protection
SWOT analysis
Strength
a) The widest and most extensive coverage nationwide
b) Affordable prepaid and Post-paid Plan
C) Financial Position
d) Marketing and adverstiment
e) Retail department
Weakness
a) High operating Expenses
b) High Churn Rate
Opportunity
a) Expend customer base
b) Market Growth
c) Upstream/ downstream integration
d) Provide more value added service
Threats
a) Strong competitor in industry
b) Product Substitution
c) Induction to new players
TOWS Matrix
STRENGHT
a) The widest and most
extensive coverage
nationwide
b) Affordable prepaid and
Post-paid Plan
c) Financial Position
d) Marketing and
adverstiment
e) Retail department
WEAKNESSES
a) High operating
Expenses
b) High Churn Rate

OPPURTUNITY
a) Expend customer base
b) Market Growth
c) Upstream/ downstream
integration
d) Provide more value
added service

SO Strategies
Increase supply to east
Malaysia
Move into untappped areas
Increase Number of retail
outlet
Expend network coverage
Provide affortable products
WO Strategies
Increase effecincy in
business and supply
chain of the company
THREATS
a) Strong competitor in
industry
b) Product Substitution
c) Induction to new players

ST Strategies
Penerate in Social
Networking Application
Intrdocue New Hybird
Product
Play on the basic of quality
services instead of price
WT Strategies
Benchmark with strong
competitor
Conclusion for Malaysia
Strategy Celcom practice is concentric diversification where its involves adding news
services to the old business. Where Ceclom is planning to add three prepaid package in 2014.
Celcom has also introduce Talk and Surf is a first plan with additional data. This new products
latest promotion which will gives cheaper data plan together with the Celcom Frist voice plan.

















XL Xiata Indonesia
As one of Indonesia's leading telecommunications service providers, XL offers an array of
innovative telecommunications products and services ranging from voice, SMS, VAS to mobile data
covering more than 90% of the population throughout Indonesia. With over 15 years experience
XL, armed with a deep understanding of its subscribers needs, is credited with bringing
cellular services to ordinary Indonesians when it introduced the budget 'IDR1/second'
programmed in 2007, allowing more middle and lower income groups access to cellular
services. XL has grown from a small company offering basic telephony services into one of
the country's largest telecommunications companies, with extensive network infrastructure
and services.
XL Axiata Vision
To become one celluar operator in Indonesia, which manifested in a commitment
to satisfy its customers ,shareholder, and employers needs

XL Axiata Values
a) Integrity
b) Teamwork
c) Service Excellence

Pl XL Axiata Tbk is one of Indonesias leading cellular service provider, offering various
types of communications products and services such as
a) Voice
b) SMS
c) Other added value-added products and services



PORTER 5 FORCE
Supplier Bargaining Power.
Ranging from the packaging, card production, BTC rental,
Headphones, IT provides, music label.

Potential New Entrance
Alcatel Lucent is targetting Asia.
Have strong relationship with Indosat and Telkom to expand their business in Indonesia

Buyers Bargaining Power
Most people are price sensitive but also wants a good services and networks
The substitute of mobile phone is fixed line and also internet connection through laptops
using local
area network ( LAN ) cable









STRENGHT
3 rd largest
telecommunication provider in
Indonesia Mobile Centric
Operator
WEAKNESSES
Low product quality
OPPURTUNITY
- Market penetration in
internet users are
increasing
- Changing of people
lifestyle and habits.
SO Strategies
- Global expansion to South
East Asia
- Create new appliation which
gives value added to the
customers

WO Strategies
- Divest into new product
market

THREATS
- Market compettition :
Price war, Heavy
Promotion and
Advertisement by rival.


ST Strategies
- Keep low price but still
maintan the services
WT Strategies
- Stragetic alliance with
3rd party.