COMPANY IS CURRENTLY IN INDUSTRIAL

CELCOM now is known as a CELCOM AXIATA.Its currently in the mobile telecommunication

services industry.CELCOM is the oldest telecommunication company in Malaysia.CELCOM
was originally listed on the Bursa Malaysia, but after the merger with Telekom Malaysia Berhad,
it has remained private.CELCOM is the Malaysian partner of the Vodafone mobile
community.CELCOM current CEO, Dato’ Seri Mohammed Shazalli Ramly , has been with
CELCOM since 2005.His contract expired in 2007 and has been renewed for another 3 more
years. TM International has been renamed as AXIATA as part of a telecom consortium in the
south east Asia. Its Stock Exchange code is AXIATA.

COMPANY’S MAIN COMPETITORS AND MARKET SHARE OF EACH PLAYER

The main competitors of CELCOM are MAXIS Telecommunication. Since its inception in 1995,
Maxis has grown from strength to strength to its current position as Malaysia’s leading mobile
operator, with the largest customer base of over 11 million people. Maxis have earned many
accolades locally and internationally. Maxis Berhad, the country’s largest mobile phone
company by market shares, said its net profit rose 28% for the third quarter ended September 30
2009.For CELCOM ,in the 9 month period, they revenue rose 11.9% to RM 4.63 billion while
net profit increased 17.7% to RM 1.13 billion. Its third quarter net profit of RM 404 million is
the highest quarterly net profit in its history.

SWOT ANALYSIS OF THE COMPANY

A SWOT analysis is a structured group activity that’s useful in identifying the internal and
external forces that drives an organization competitive in its markets. SWOT is an acronym for
Strength, Weakness, Opportunities and Threats.

 Strength = Cheapest postpaid plan

 This plan is most suitable for users who are only allocated with
minimum budget for the monthly phone bill.
 Offers you the lowest postpaid plan in Malaysia with commitment fee
as low as RM20 per month

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 = Larger Asian telecommunication company

 Celcom Axiata has controlling interest in mobile operators in

Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with
significant strategic stakes in India, Singapore and Iran.
 In addition, the Malaysian grown holding company has states in non
mobile telecommunication operations in Thailand and Pakistan.

 Weakness = Market share

 Celcom lost market share to Maxis.Celcom only subscriber share at

31% , meanwhile Maxis was able to maintain its subscriber share at
42%.While Digi subscriber only at 27%.

Subscriber Share
Celcom Maxis Digi
27%
31%

42%

Pie Chart : Market Share of 3 telecommunication company in Malaysia

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 Opportunities = Growth in global telecommunication service industry

 Celcom claims to have the widest and most extensive coverage

nationwide, compared to other cellular services in Malaysia.
 Expansion of users

= Initial public offerings in other countries

 Success in Sri Lanka and Pakistan
 Also success in 10 other countries

 Threats = Subscriber War Business Practices

 To respond to user needs, the industry engaged in subscriber war
business practices. Three years ago that Celcom was still very much a
struggling entity. It was on the verge of decline in terms of revenue and
subscriber base.

= Enter the Smartphone war

 Celcom CEO, Dato’ Seri Mohammed Shazalli Ramly said the company’s
infrastructure can support the device but a big hurdle to securing the iPhone
deal is the commercial terms that both parties cannot agree on.


A HTC Smartphone (left) and an Apple iPhone seen at a mobile phone shop. The
iPhone phenomenon has revolutionized the global mobile phone industry.

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STRATEGIES TO REMAIN COMPETITIVE IN THE INDUSTRY

Double its mobile broadband customer base to one million by end- 2010

 will focus on pushing its mobile broadband service to sustain its quarterly growth streak
 Its primary target now is to double its mobile broadband customer base to one million by
end-2010 from 475,000 in the third quarter ended September 30 2009.
 In the third-generation (3G) mobile broadband space, Celcom currently leads other
mobile operators in terms of subscriber base. Maxis Bhd has fewer than 200,000
subscribers as of the third quarter of this year.
 Its third quarter net profit of RM404 million is the highest quarterly net profit in its
history.
 They will be implementing new synergies focusing on customer touch points, human
capital and strengthening position with renewed zest and commitment. This will be done
concurrently with an accelerated broadband push and continued 'smart spending' cost
management.

Opportunities of the new telcoscape

 The integration of Celcom and TM Cellular has expanded and enhanced our network, in
terms of geographical coverage and network quality. In line with the strategy to provide
the best network quality to the customers, they have allocated a substantial portion of the
annual capital expenditure to improve the capacity and quality.

 Long-term strategy is to expand the business beyond mobile voice communications and
into new market segments to access new revenue streams. To meet the ever-changing and
sophisticated needs of our customers, we will continue to introduce more mobile data
services and solutions to keep people connected anywhere, anytime.

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OPINION AND SUGGESTIONS TO IMPROVE THE OVERALL PERFORMANCE

In my opinion, Celcom have do well for their market. They also has controlling interest in
mobile operator in Asian. They got the cheapest plan for subscriber with minimum budget. They
improve quite a lot in wider coverage also.

I also like to suggest on Blackberry package that they offer to users. For young adults, I believe a
monthly RM50 commitment fee for voice call will suffice. Celcom price for monthly
subscription fee at RM118,meanwhile Digi at RM108 and of course Maxis is the expensive
about RM200. About the Term and Condition on Blackberry Plans, I hope they will state a
clearly Term and Condition compared to Maxis. They have very detailed Term and Condition.

REFERENCES

 Celcom Bhd Official Website

 Telekom Malaysia Bhd Official Website
 Celcom Coverage Map
 Celcom Confident Of 450,000 3G Subscribers By Year End
 by daniel on November 19, 2009
 linsay@thestar.com.my
 By Goh Thean Eu
Published: 2009/12/05
 www.dbsvickers.com