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.
Reference
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Still like crap. your lecturer doesnt care about performance of the company that you chosen nor the demand of the consumers. he would want to see the understanding of a basic oligopoly market structure. high barrier to enter and exit, price maker, few seller, differentiated yet close substitute product. how they set their price, the strategy they used like cartel and the prisoner theory. explain each point and relate it with the company that you chosen. the loyalty towards of the product is low and can be greatly influenced by price factor if the product is close substitute. so, how the company would able to maintain their customers? give suggestion like rebate and loyalty program for this case is telecommunication network.
ReplyDeleteya..Their company is difficult to enter the industry. This is because their company wants to avoid copyrights, patents, advertisements and also economies of scale (EOS). Besides they are price maker that who set the price for their own company such as Ipone or Ipad plan and internet plan. In Malaysia there are some common telecommunication network such as Digi, Celcom and Maxis. This is why; there are a few seller and competitors in market. Moreover, Maxis and Celcom have entered into a rapid network coverage expansion mode for their 4G services launched early this year. Maxis is reported to have about 130,000 4G users, mainly from the Klang Valley. It aims to expand its coverage to Penang and Johor from the second quarter onwards. Meanwhile, Celcom has deployed its 4G service on 70 sites located mainly in the Klang Valley with the aim to expand coverage to 1200 sites nationwide by February 2014. They will gradually move to tier pricing data plans to maximize their data revenues expected to surge noticeably in the future under the 4G wave. On the other hand, Digi will see attention on the progress of its business trust formation as well as its ongoing network modernization and collaboration plans.
DeleteMaxis, Digi Celcom have made a lot of advertising and promotion. These 3 frms are always observing their price with each other and create a value before doing promotion or advertising. Thus, this can give those consumers to choose. Once they have chosen the best company, unknowingly this will build customer loyalty.
Now maxis and Astro are cooperated with each other to build highly competitive market place as the line in the telecoms and broadcasting sector blur. A cartel and is an illegal group of firms acting together to limit output, raise price, and increase profit. Maxis will not have to set up its own IPTV platform since Astro will be its service provider for fixed and wireless platforms. They are in 3.1 million households and they do not see any stagnation of growth, instead they see healthy new additions. Astro will see its average revenue per user go up with the deal to Maxis. The pricing will be dynamic and a number of packages are under construction. They expect to see their market in another quarter or two and both parties will jointly market the packages through all the respective distribution channels.
If maxi, Celcom and Digi maintain their customer. They have to play a low such as extend warranty, low cost, and discount. Besides, they must Informative advertising used to provide consumers with information on the product or service, as well as build awareness and initial demand of a new product. For example Maxis and Celcom completed use 4g internet in Malaysia and their advertising must relate how fast the 4g internet use. Moreover, they have to focus persuasive advertising to develop brand preference, and increase customer loyalty. Lastly they have to create reminder advertising reminder advertising. For example the promotion is in short period and the product is limited. This will make customer decided to buy their product. Unknowingly the company will gain supernormal profit in short run.
opp.. i forgot the reference
ReplyDeletehttp://www.thestar.com.my/Business/Business-News/2013/07/04/Telcos-outlook-remains-intact.aspx
http://www.thestar.com.my/story.aspx?file=%2f2012%2f9%2f6%2fbusiness%2f11976416&sec=business
then put it up in the blog. not in the comment section
ReplyDelete