Recommended Functional Strategy for Maxis

Having the advancement on technology and internet around the world has given a huge impact on the communication sector. In Malaysia, the competition of mobile telecommunication providers is becoming heavier now and then. Maxis Communication Berhad is one of the top players of mobile communication provider that keeps sustaining in the business by delivering the innovation and simplicity for the users.

An analyst points out that competition now is a different game. The price war is confined to the growing prepaid segment and in areas where demand was relatively more elastic. Another issue for cellular industry is that prepaid market segment has a high churn rate or low brand loyalty. The subscribers often have no doubts switching between cellular operators, based primarily on pricing and availability.

To increase the stickiness or loyalty of subscribers and survive in the competitive business environment, mobile service providers have to set their business and functional strategies.

Therefore, below are some recommended functional strategies for Maxis to be applied. Functional strategy allows Maxis to approach all functional areas to achieve corporate and business unit objectives and strategy by maximizing resource productivity.

1. Marketing strategy

The marketing strategy could be increasing customer rewards or providing consistency of good services to existing customers. This is called market penetration for Maxis. All is aiming to capture larger market share, retain the customers and make them loyal to Maxis.

Another strategy is to attract potential customers by making attractive advertisement and creating innovative concept of product and services. The delivered message than can be included is to persuade and encourage consumers to switch to Maxis.

2. Financial strategy

In order to remain competitive, Maxis can lower down the calling rates or come up with the bundled packages.

3. Research and Development strategy

Utilizing and supporting research and development department to produce new and tech savvy product can be done by Maxis to prevent going outdated overnight. Maxis also entered an infrastructure- and spectrum-sharing agreement with REDtone International that will enable both players to fast-track their rollout of ultra-high speed 4G networks throughout the country. This will present customers with the opportunity to access the highest 4G broadband speeds in the country, up to 150 Mbps, with the latest 4G LTE technology through the combined spectrum, Maxis claimed.

3. Operations strategy

The vertical integration can be done by utilizing the latest technology and marketing new product through dealers instead of ambassadors. The efficient operation also can be done by collaborating with other telecommunication provider companies to share base station. In terms of cost, it will lead to cost minimizing.

4. Purchasing strategy

Maxis can expand their business by purchasing the devices in order to bundle it with their services. For example, Maxis makes an agreement with iPhone and Blackberry company to have their product bundled with Maxis and sell to the market.

5. Logistics strategy

The current trend is all about going to online. Therefore, it is better for Maxis to provide and serve their product and services everywhere throughout the country. The product and service should be well accessed. Customers can get it from any possible channels, such as distributors, agents, mall, stores, online banking, etc.

6. Human Resource strategy

Maxis has many different departments such as Finance and Administration, Network Engineering and Operations, Information Technology (IT) Services, Legal, Human Resources, Internal Audit, Enterprise Business, Consumer Business, Products and New Businesses and Consumer Marketing departments. For each of these departments, they have managers and subordinates who all possess the relevant and significant expertise needed for every specific type of department. As every department has a head or a manager and their supporting subordinates, jobs are broken down into simple, routine and well-defined tasks that are able to be achieved most effectively and efficiently. In additional of that, Maxis certainly already practices this principle of management as its employees are divided into departments that match their capabilities and expertise in order to produce the most efficient and effective services and products.

7. Information Technology strategy

Since Maxis is mobile communication provider, information technology is related to the product development. Good and proper IT infrastructure will reflect to the good quality of product. Therefore, Maxis should improve their current IT network to produce better quality of product. For example, if previously there are complaints on having no signal in rural areas, by improving IT infrastructure this problem will be addressed. IT also can be used to improve the role of CSR. Nowadays, many customer services are online based. This can save the cost than if the company hires people to become CSR.