Strategic Analysis and Implementation for Telekom Malaysia (Report)

This report provides a comprehensive strategic analysis of Telekom Malaysia Berhad (TM), the leading telecommunications company in Malaysia. The analysis begins with an overview of TM's strategic direction over the past five years, highlighting its 'COOL' strategy focused on customer experience, operational excellence, and innovation. A detailed industry analysis is presented, evaluating TM's market position and competitive advantages within the Malaysian telecommunications landscape, including fixed-line, broadband, and mobile services. The report utilizes SWOT and PESTLE frameworks to assess TM's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its operations. The analysis further explores TM's competitive advantages compared to rivals like Maxis and DiGi, emphasizing its HSBB network and market share. Finally, the report addresses strategic capabilities, aligning mission and vision with market demands and concludes with recommendations for defending TM's core business and resource implications. This report is a valuable resource for understanding the strategic dynamics of a major telecommunications player in a dynamic market.

Strategic Analysis and Implementation

Executive Summary:
The present report will be covering the telecommunication company which is the market
leader in Malaysia since its establishment from the year 1984 which is Telekom Malaysia Berhad
or TM. The vision of Telekom Malaysia is to make life and business easier for a better Malaysia
and since few years its is using the strategic decision which is termed to as COOL. The main
strong point about the company is the popularity among Malaysian in country and is the leading
company in industry occupying almost 90% of market share. The partnership which is between
Telekom and Malaysian government should be looked forward to as the biggest opportunities.

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1. Strategic direction of Telekom Malaysia during the past and the way in which strategic
thinking has developed within past 5 years...........................................................................1
TASK 2......................................................................................................................................2
2. Detailed analysis of the industry in which Telekom is operating......................................2
3. Choosing and using of appropriate frameworks for strategic analysis..............................3
4. Critical discussion of competitive advantages among its direct competitors of Telekom.
...............................................................................................................................................4
5. Industry scenario which Telekom is facing within its existing market domains...............5
TASK 3......................................................................................................................................6
6. Whether the mission and vision of Telekom are aligned to the demands of the
marketplace............................................................................................................................6
7. Analysis of strategic capabilities of Telekom....................................................................6
TASK 4......................................................................................................................................7
8. Discussion of possible strategies that Telekom could follow to defend its core business.
...............................................................................................................................................7
TASK 5......................................................................................................................................7
9. Analysis and evaluating the resources implications of recommendations which Telekom
has to address.........................................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
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INTRODUCTION
The strategic analysis is the tool and techniques which is used to define the strategic
business planning any organisation and this is also referred to as SWOT analysis of the
organisation. This help to determine the competitive advantages of company within the
market or industry where it is operating. It contains many theories and frameworks which are
useful to guide the strategic analysis and choice. The present report is based on Telekom
which is the leading telecommunication company of Malaysia which was founded in 1984
and is now owned by public sector. Telekom is having a strong emphasis on innovation and
helping the public of Malaysia to connect and communicate in a better way. The report will
cover strategic direction during the pastime and developed in past 5 years of Telekom
Malaysia and detail analysis of the industry within which company is operating. And in the
end of report it will cover all the recommendations of the implication which the company
need to address.
TASK 1
1. Strategic direction of Telekom Malaysia during the past and the way in which strategic
thinking has developed within past 5 years.
Telekom Malaysia is the market leader in the telecommunication industry of Malaysia
and also in the related service under the license issued by Ministry of Energy, Water and
telecommunication. Company is providing wide range of services like that of local call, long
distance calls, data service and also mobile communication under the Celcom brand. It
acquired Celcom and merging with the mobile operations under TM touch with this Telekom
is having the monopoly on fixed line network (Walker and Heidrich, 2014). The aim of
Telekom Malaysia is to provide the best form of communication service, information and
entertainment service and with this been the leading telecommunication service provider of
Malaysia. The vision of Telekom Malaysia is to make life and business easier for a better
Malaysia and since few years its is using the strategic decision which is termed to as COOL.
This is the strategies of company which is enabling Telekom to be the market leader in
Malaysia with its best form of service. COOL strategies are set by company which guide
company in achieving their market objectives. COOL strategies stands for:
Customer experiences and service excellence.
One company mindset with commitment to serve.
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Operational excellence and capital productivity.
Leadership through innovation and commercial excellence.
These COOL strategies of Telekom Malaysia are allowing company in offering
comprehensive range of communication service and solutions in broadband, data and fixed
line (Ghezzi, Cortimiglia and Frank, 2015). Telekom believe in delivering the next generation
IT and standardised a unified computing platform in meeting the complex requirement.
Telekom is having almost 2.2 million broadband customer all over Malaysia and is securing
top position of broadband provider. The higher authorities of Telekom Malaysia decided to
privatise the entity so that the growth of the company can be increased and is able to fight the
competitors in market.
TASK 2
2. Detailed analysis of the industry in which Telekom is operating.
Under this tool of industrial analysis it helps to understand the market position of
company which is in compare to the other companies in same market and offering similar
products or service to their customers. Industry analysis will be assisting Telekom Malaysia
in taking important note on the position of company and then determining what are the
changes which to be made (Alonso‐Almeida, Llach and Marimon, 2014). Telekom Malaysia
is working and operating under the telecommunication industry and is providing wide range
of services like fixed line, radio, TV broadcasting, broadband, network services etc., Ministry
of electricity, Water and telecommunication is owning the company and thus is a publicly
traded and government linked company. This company is also trading in some neighbouring
countries like that of Pakistan, Bangladesh, Indonesia, Thailand, India, Sri Lanka and having
strong market focus on Malaysian market.
Development of this industry in Malaysia is playing a very critical role in planning of
Malaysian government. As the aim of Malaysian government is to put Malaysia as the hub of
regional and global ICT and multimedia thus by providing tax breaks and attracting MNC in
Malaysia. This increment of MNC in market is leading to increase the competition in market
and developing telecommunication services. As in industry Telekom is having the monopoly
which is only possible as this is largely owned by state that too only on fixed line and cellular
service which too ended in 1994 (Rajasekar and Al Raee, 2013). Government gives the
license to several competitors and this is still having more than 90% of the market share and
all newcomers are having the concentration on mobile telephony. Telekom always want to
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gain the maximum market share and for this mobile network which are based on GSM and
CDMA systems just to meet demand of rural and eastern Malaysia. In accordance with the
other South eastern countries of Asia Malaysia is having an advanced telecommunication
network.
3. Choosing and using of appropriate frameworks for strategic analysis.
Telekom is the leading telecommunication service provider of Malaysia and having
almost of 90% market share in the market which tells that it is having the monopoly in
country (Klettner, Clarke and Boersma, 2014). The strategic analysis of the company can be
done by the SWOT and PESTLE analysis of company under the industry and country where
it is working.
SWOT analysis:
Strengths- the main strong point about the company is the popularity among Malaysian in
country and is the leading company in industry occupying almost 90% of market share. TM
net which is the subsidiary of Telekom Malaysia is the largest internet service provider in
country and this is always restricting others in market to the highly populated areas of
country (Strategic Planning And Management strategic Analysis, 2017). Telekom Malaysia
as is government linked company which is giving it the priority in all the tenders of
government and can easily get the license of any innovation which they need to do in market.
Weakness- despite of the popularity among the citizen of country they are always
complaining about the low speed and lack of reliability of connection which company is
providing to customers. TM net is also not having stability in internet service which is
provided by them and this is affecting reputation. The debt to equity ratio of company is
about 0.7 which indicate the financing of company by the means of debt and this is not at all
a good sign in market.
Opportunities- there are very high demand of the company and its network in Malaysia which
is regarded to as the biggest opportunities to Telekom. All the foreign player in the Malaysian
market are not been treated to as equal to local players so citizen of country are always
preferring Telekom above others market. Development of High Speed Broadband (HSBB)
access is also one of the major opportunity in Malaysian market.
Threats- there are large number of wireless telecommunication provider in Malaysian market
which are providing better service than that to Telekom. There are many economic problems
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in the country which is leading to drop down of purchasing power of customers. The new
entrance in market are also leading a serious threat to Telekom in market.
PESTLE analysis
Political- as there is an agreement between Malaysian government and Telekom about the
high speed broadband (HSBB) and the government did not give any chance to the others in
market by the means of any tender. In this procedure government will be giving subsidiary to
company of about 2.4 billion for the project (Wang and Lai, 2014). The number of phone a
person is allowed to have been restricted by the Malaysia Communication and multimedia
commission (MCMC) which is also affecting company.
Economical- the GDP was creased to about 0.5% in country which lead to lower purchasing
power of the customer and thus affecting Telekom. And after the launch of 2 economy
stimulus package by subsidiary reduction GDP of country is increasing.
Social- with the implementation of wireless broadband and high speed internet connection the
people of country are moving towards knowledge base nation (Strategic Planning And
Management strategic Analysis, 2017). They are opposing the poor base internet connection
in country and government is also trying to eradicate this. The market demand of high speed
internet is increasing gradually.
Technological- without this advancement the telecommunication industry will not be able to
cope up with the other fast growing factors this is the main factor of industry (Uygun,
Kaçamak and Kahraman, 2015). Government is trying to indulge in more technical
advancement and making the country a multimedia hub. The wired internet connection by the
help of copper wire in household and DSL and this is overlooked by 3G service and
WIMAX.
Legal- in Malaysia there are no such legal implications on the telecommunication industry
thus there are no hindrances which can stop them operating freely.
Environmental- if the government is installing of network in household then there will be
requirement of clear land and vegetations which will be damaging the environment of
Malaysia.
4. Critical discussion of competitive advantages among its direct competitors of Telekom.
Telekom is covering all the business of country like retail, wholesale and global
business by offering wide range of product and services. Thou all citizen of Malaysia are
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relying on Telekom for the service which are been provided but still there are some
competitors like Vodafone, Maxis communication and DiGi (Rajasekar, 2014). These are
some direct competitors of company which are operating in country but then also Telekom is
having competitive advantage over these competitors. Telekom Malaysia is having HSBB
which is allowing its customers to browse over the speed of 256 kbps. It was first in the
country to provide first broadband service in year 2001 under the name of Streamyx and with
help of DSL. Thus, at present time Streamyx is having the largest coverage in nation of 100%
in broadband network. Telekom is having customers base of about 1.6 million and this is
penetrating to about 75% of retail customer market base (Hage and Boonstra, 2013). It got
merged with the first 3G service provider of country Celcom which was covering about 71%
of the market share in mobile broadband network.
5. Industry scenario which Telekom is facing within its existing market domains.
Malaysia is having very advance telecommunication market in country as compared
to many South east Asian countries. The government is continuously engaging in making
Malaysia a multimedia and IT hub in world and this is the reason as to why they expanding
their market operations. There are also market penetration in fixed line in Malaysia which is
coming down in front of mobile broadband service. There are continuous market reform in
field of telecommunication which is enabling government to increase the use of mobile
broadband in country (Ahmadi, Nilashi and Ibrahim, 2015). The major development in the
telecommunication industry of Malaysia are as follows:
 Government of Malaysia and Telekom Malaysia signing the High Speed Broadband
project phase 2 which is known as HSBB 2 and coming under the partnership.
 Mobile broadband is continuously increasing and thus making fixed line to fall down
and this is now dominating the market.
 Till 2022 this fixed line market will be smashed and taken wholly over mobile
broadband.
 National Internet of Things (IoT) was released by Malaysian government to strategic
roadmap.
Malaysia is on the continuous and rapid expansion in terms of economic and this will
be remaining in the coming few years as well. Year 2015 seen the biggest growth of this
telecommunication market in Malaysia with the increased in number of users, revenue
boosting up and all forms of new technological changes in market (Wang and Lai, 2014). The
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government of Malaysia is also driven by the technological changes and advancement in
country so that the can attract all high tech and MNC from all around the world.
TASK 3
6. Whether the mission and vision of Telekom are aligned to the demands of the marketplace.
The vision of Telekom Malaysia is to make both business ans life in Malaysia more
easy and better. While the mission of company is to deliver easy life to:
 Business by supporting them and collaborating with them to integrating solutions.
 Customers by converting their lifestyle and communication experience.
 Country by supporting socio economic development through education, social
initiatives and innovation.
There is also a very high market demand of the service in Malaysia which is making
Telekom highest grossed telecommunication company in country. In the year 2017 it was
having revenue to 4% to 3.5% and this was led to strong demand with the efforts of lowering
the operating cost. According to the mission and vision of the company all the demand are
always in the alignment and this is leading to about 90% of whole market share of company
in telecommunication market. The market demand and customer expectations are always high
for the company as is the leading telecommunication company of Malaysia (Walker and
Heidrich, 2014). The all type of services which they are providing services like mobile
broadband, TV broadcasting, fixed line, data and all related services. There are almost 2.2
million broadband customer all around country and this is also operating in the neighbouring
countries including India and Pakistan. It is not only covering the urban area of Malaysia but
also having major stake in rural and village area of the country as is having 71% of the rural
market share of telecommunication market.
7. Analysis of strategic capabilities of Telekom.
Strategic capabilities are the ability of any firm to successfully employing all the
available strategies which will be helping them to gain the competitive advantage and in
increasing the value of brand over times. Telekom Malaysia is having the efficiency and
performance with the virtualisation of business critical applications (Alonso‐Almeida, Llach
and Marimon, 2014). This is the market leader with providing the best quality of mobile
broadband services to its customers. They are also proving value to its customers and
stakeholders by focusing the high quality experience to customers. Technology and
innovation are the two main pillars of Telekom which is been used in the most effective
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manner which is helping the company in lowering down its cost. Telekom is in its coming
years planning to grow, improve and expand the private business and this is increasing the
application development capabilities.
TASK 4
8. Discussion of possible strategies that Telekom could follow to defend its core business.
In order to defend the core business of the firm it is important to keep their products
and services over competition and their attack. If the company keep on growing and
expanding the business of firm then it will surely always gain over others in society and
market. To showcase its brand and the image of company high then the rivals in industry it is
required to have high quality of products and service (Uygun, Kaçamak and Kahraman,
2015). As if the competitor is giving the customer better quality of product and that too at low
price then it can lose that customer very easily. They are always in path to increase the brand
value and quality of product and service by focusing on the core business and building up
strategies for them only.
They need to strengthen brand and core business so that they can gain maximum
revenue form them. This could be done by better means of communication which should be
there between company and customer or client. Problems of customer must be listened and
then addressed in good and efficient manner so that they can easily retain them into company.
Telekom is having some many benefits of being into market for long time and this will not be
there in any of the newcomer in market (Hage and Boonstra, 2013). So they can use the
strategies of customer retention, database planning, trained staff and the techniques which
they will be using and then applying it.
TASK 5
9. Analysis and evaluating the resources implications of recommendations which Telekom
has to address.
The best part about Telekom Malaysia is its power of customer retention within the
company and not allowing them to leave the company. This is helping them to earn more and
more profits and revenue and finding the cost of providing service to be low. Telekom is
doing very good since the time of its incorporation in the year 1984 (Walker and Heidrich,
2014). And this is evolving to be the largest telecommunication broadband network in
Malaysia which is offering the best quality of service to customers. Some recommendations
which they need to follow in order to grow in even more pace.
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 The use of technology and innovation should be increased and this will be helping in
cutting the cost of firm.
 The partnership which is between Telekom and Malaysian government should be
looked forward to as the biggest opportunities.
 They should be investing in some other countries as well other than the South east
Asian countries only.
 The business idea of merger with Celcom company was very good and they should
focus more on wireless connection and broadband network and also in the increasing
the speed of internet connection so that customer are not hampered.
CONCLUSION
In the whole report of strategic analysis and implementation it was summarized that
Telekom Malaysia is the leading enterprise of Malaysian market of telecommunication
industry. It is using the core products and services of the company in utilizing the best form
of market share which is about 90%. In the examination of competitive advantage of
company over the other market player in industry it was required to do the SWOT analysis.
The report also provide the in depth study of the telecommunication market of Malaysia and
how the others in market are attracting the customers by their high speed connection which is
certainly low from that of Telekom. There are possible strategies which are used by company
in defending the core business like in attracting the customer and influencing other investors
to do investments.
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REFERENCES
Books and journals:
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technologies for transforming the urban metabolism. Journal of environmental management.
141. pp.104-115.
Ghezzi, A., Cortimiglia, M.N. and Frank, A.G., 2015. Strategy and business model design in
dynamic telecommunications industries: A study on Italian mobile network operators.
Technological Forecasting and Social Change. 90. pp.346-354.
Alonso‐Almeida, M., Llach, J. and Marimon, F., 2014. A closer look at the ‘Global Reporting
Initiative’sustainability reporting as a tool to implement environmental and social policies: A
worldwide sector analysis. Corporate Social Responsibility and Environmental Management.
21(6). pp.318-335.
Rajasekar, J. and Al Raee, M., 2013. An analysis of the telecommunication industry in the
Sultanate of Oman using Michael Porter's competitive strategy model. Competitiveness
Review: An International Business Journal. 23(3). pp.234-259.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Wang, W.K., and Lai, H.W., 2014. Does corporate social responsibility influence the
corporate performance of the US telecommunications industry?. Telecommunications Policy.
38(7). pp.580-591.
Uygun, Ö., Kaçamak, H. and Kahraman, Ü.A., 2015. An integrated DEMATEL and Fuzzy
ANP techniques for evaluation and selection of outsourcing provider for a telecommunication
company. Computers & Industrial Engineering. 86. pp.137-146.
Rajasekar, J., 2014. Factors affecting effective strategy implementation in a service industry:
A study of electricity distribution companies in the Sultanate of Oman. International Journal
of Business and Social Science. 5(9).
Hage, E., and Boonstra, A., 2013. Implementation factors and their effect on e-Health service
adoption in rural communities: a systematic literature review. BMC health services research.
13(1). p.19.
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