Oligopoly:
Maxis Digi and Celcom
Malaysia is
oligopoly structure nowadays. They are largely compete on differentiate. Maxis, Digi and Celcom are one of the Malaysian oligopoly
cellular communications industries with high entry barriers, mainly due to government
licensing restrictions and high exit barriers due to huge capital investments.
However, frequent technology changes could potentially. The market share is
with intense price-competition as the market gets more saturated. Non-price
competition is also intense, mainly through advertising. The 3 large cellular
communication firms (Maxis, Digi and Celcom), individual market shares are used
to measure market power.
However, as price-competition escalates, other
cellular communication industries are pricing closer to marginal costs as
evidenced by the steady drop in ARPU over the past few years. Consumer
satisfaction is high for Maxis though consumers are seeking for even lower
communications charges and greater geographic coverage. Maxis is currently
doing a good job and should continue to push ahead with its plan to allow
greater customer choice.
This picture is shown
the different promotion plan for Iphone 5
In my opinion Maxis, Digi and Celcom should also
monitor for deceptive advertising, SMS contests and voting to collusive behavior
through price-signaling. It is also recommended that Maxis conducts
benchmarking against regional and international cellular communication
industries on key areas like profitability and returns on equity to determine
fair-returns, service quality and technical efficiency to determine the success
of its policies in future.
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