Report Group Assignment OB Comm Celc
Report Group Assignment OB Comm Celc
Report Group Assignment OB Comm Celc
1.0 INTRODUCTION
Company Background
Celcom started its operation as STM Cellular Communications in 1988 with Fleet
Group and Telekom Malaysia as shareholders. Subsequently Telekom Malaysia
sold its 51% shareholding to the TRI group which was controlled by Tajuddin
Ramli. Fleet Group's share meanwhile was transferred to the Time Engineering
group which was later sold to TRI. In the initial years Celcom experienced a
tremendous growth in subcriber base and network coverage under the
stewardship of Rosli Man, the President of the company. It was during his tenure
that Celcom turned into the leading cellular companies in Malaysia. He left
Celcom in 1996.
When the cellular phone market was opened up in 1995, Celcom upgraded to the
GSM900 service and quickly grew to become the largest mobile phone company
in Malaysia. Competition soon sets in, and several digital mobile telcos compete
for market dominance. It was the age of the phenomenal growth of mobile
services.
During the Asian financial crisis in 1997, Celcom's owner, Tan Sri Tajudin Ramli
suffered a debt crunch, and his shareholding in Celcom was seized by Danaharta,
the national asset restructuring company. Failure to resolve his debts resulted in
the controlling stake in Celcom being sold to Telekom Malaysia, the government-
The tribunal ruled that Celcom was liable to pay DeTeAsia US$177.2 million in
principal plus US$16.2 million in interest as well as other legal and arbitration
costs. This works out to a tidy sum of about RM740 million, leaving Telekom to
intensify its efforts at recovering monies from Celcoms previous owners for their
misdeed. Only then will TM be able to fully exorcise itself from the haunting of
Celcoms tumultuous past.
In line with market focus and positioning strategy, we will continue to focus on a
more sophisticated segment management, new product and services beyond
voice, a significant enhanced Human Capital Management and major
transformation on customer experience.
2.0 BODY
Noor Kamarul Anuar Nuruddin its mastermind behind the widest coverage and
best network was entrusted to continue his current role as CTO. Ericsson has
been Celcoms long standing Spare Parts Management Service (SPMS) partner
since 2000. For Celcom, the SPMS contract from Ericsson offers a future-proof
spare parts handling model, which means that it can adopt the latest features
very quickly, an important way to improve its competitive position. The longevity
and latest extension of the contract is a proof point of the trust that exists
between the partners. Noor Kamarul Anuar Nuruddin, CTO, Celcom Malaysia
Berhad, explains the key advantages for the operator: The SPMS contract has
always worked for us, Ericsson has consistently performed and with this reliable
delivery of components, we do not have to worry about whether we have the
correct dimensions or enough parts. It makes our lives a lot easier.
Celcom has several branches in Johor and Human Resources department play
important roles in their company. All departments in Johor Bahru use IT in their
daily management. For example celcom use meeting conference and e-meeting
in their organization. In order to spread information they use BBM, sms, and
email. Email is one of the way to send their proposal and to contact with their
HQ. In their organization Celcom use divisional categories such as Sales
department, Human resources department, and Facilities department. They are
also use IT to organize activities. For instance in order to organize an event, sales
department use online system. For those who want to organize event with
Celcom, they need to key-in form that are provided in Celcom website. Only
selected staff can check the form. Besides that, human resources department
have 3 staff that are responsible in recording document, facilities, and credit
management.
During the early 90s, the uses of information technology were very weak and
limited. This company is severely limited on technology excess thus nearly
everything is done manually because the technology back then was still in its
infancy. All staffs are connecting with each other via land line telephones,
voicemails, face-to-face meeting and postal mails. Postal mails take days the
internet connection used during the early 90s known as Analog or the dial-up
access which the quality of the connection is not always good due to poor
coverage and data rates are limited as well as expensive. However, everything is
changing including the information technology used in Celcom such as:
To maintain their position as market leader, celcom has enhanced their products
technologically to keep the Malaysian telecommunications updated with ever
technological advancement by developing competitive measures to fight off their
rivals both at the present and in the future, this ranges from delighting their
customers with their numerous service features, developing greater customer
relationship strategy, implementing more societal marketing schemes and
supporting the government.
create distinctive target market which make the product available, affordable,
convenient and unique at a consistent and high level.
Celcom is the market leader in Malaysia when the competition in the specialty
advertising industry is very strong both on local, regional and national level. They
also have improved their competitive level, through developing many
telecommunications feature, providing quality services at considerable price. The
affect of the latest introduction of a new telecommunications service provider (Umobile) make the competition in the telecommunication industry very high. For
instances, Celcom had done a strategy with the cost of sms reduced from 50
cent to 25 cent and the cost of call reduced from 35 cent to 20 cent per minute.
They are applying many future strategies to maintain their position as the
market leader in the Malaysian market and at the same time Celcom enhanced
their products technologically to keep the Malaysian telecommunications
updated with the technological advancement like niche marketing, business
package development, intercontinental and international service expansion.
Besides, Celcom also currently offers the best broadband network in Malaysia
since technology is the fastest growing market trend nowadays. Therefore,
Celcom itself shows the strategy that they used to gain the competitive
advantage.
Besides that, being the oldest and most experiences from the three, Celcom has
many competitive advantaged compared to major rivals which are Digi and
Maxis. Celcom have the highest trend in the market share, giving the highest
coverage, many products features and having the highest customer size in the
Malaysian market. They give the highest coverage as well where they spread the
coverage with the planning which is they do some research that include the
aspect where it depends on population in that area and the technology network
of the country. For example, in Manhattan, the technology advanced that they
used will reduce their implementation cost. Other than that, Celcom provides
varieties of products and service to their customer, which is why they are
presently the best in Malaysia. But they intent to launch a new product (U-verse),
that lets customers, pay their bills through phone, book online flight tickets and
hotel reservations. This would be the first that make long term of period to
convinced customer about the company commitment by providing the best
services to developing the country into globally connected nation. Its used the
differentiated strategy when they offering superior quality and valuable product
features.
Furthermore, they also are having highest customer size in the Malaysian market
where there is direct consumer market of hand phone user that this service can
be utilized in our day to day life, like paying bills and checking account balance,
making it easier for our families by just pressing a button instead of having to go
to the company or bank to pay our bills. The market is divided into two which are
youth market and normal market. Moreover, there is full freedom of entry once
the company have meet up with the requirements and is ready to fulfill the
government obligations. Nevertheless, Celcom has understood the need to make
customers satisfied and providing not just what they need today, but what they
will need in the future. In order to maintain the current market Celcom has
developed competitive measures to fight off their rivals both at the present and
in the future. Their services features are developing greater customer
relationship strategy, implementing more societal marketing schemes and
supporting the government. Through advancing technology, they have made it
difficult for small companies to enter the market, thereby, creating barrier to
entry for other small companies.
Then, the buyer power occurred when customers ideology of quality service
less price is still the ruling key to purchase. Understanding this is basics in every
industry. Have been provided with many choices, the consumers in Malaysia
normally go for the best service that offers the least price. They believed that
technology plays the important roles that provide the best technology to produce
quality service to their customer. They can only provide you with the best for the
highest cost and this is another competitive advantage Celcom have over its
competitors in the Malaysian market.
Celcom use IT in their business. Offering their customers more than 10 solutions,
Celcom PowerTools significantly increases the efficiency of their customers
business with a few simple clicks. The improved business solutions and voice
plan meets the vigorous demands of today's workforce.
Email connectivity gives Celcom Email & Beyond, a universal system utilizing
Microsoft and other platforms for instant and effective push and pull email
Celcom most important business productivity tools. These solutions also allow
Celcom to manage and enforce security protocols effectively and wirelessly.
On the other hand, mobile financial service offer three ways which are
188Mobile, Mobile Banking and Mobile Payment. With 188Mobile, customers can
get stock information in their mobile phone whenever they require. These include
real-time prices, summary snapshot, in-depth details, intraday charting, stock
tracker and multiple viewing options. They also receive access to OSK research,
and market breaking news. Celcom mobile banking solutions offer customers
unrivalled convenience to check account summary, perform bill payment,
transfer funds, and many more. Recently, Celcom introduce a new mobile
payment known as Wireless EFTPOS. It is a new wireless payment system that is
fast to set up and ideal for point-of-sales transaction, allowing customers to make
payment whenever and wherever they may be.
Enterprise Messaging Service (EMS) gets Celcom message to everyone employees, customers or even business associates, in an instant. From web to
wireless, it is the fastest way to provide real time status or alert information.
Field Service Automation is the solution that allows instant access to Celcom
corporate database by their field personnel. It is ideal for usage at warehouses,
assembly plants, technical support centers and for mobile enforcement. Sales
Force Automation is one of the best way to keep Celcom sale force lean and
mean, online and on top of every job. This solution allows the capture, routing
and monitoring of leads across their sales force. Celcom also can keep track of
assignment and status of jobs and planned schedules. Ultimately, they can check
customer's credit or payment details and inventory status from wherever they
may be. Enhanced Enterprise Messaging (EEM) provides wireless connectivity
with customised back-end integration offering convenient and immediate
connectivity to all network service providers. It features SMS Bulk for auto alerts,
SMS Broadcast, SMS Hotline and SMS Premium for Mobile Vouchers, surveys &
polls and for Information-on-Demand applications. Enterprise Mobile Portal is
ideal for Celcoms customers to access information through their mobile phones
via 3G/GPRS. This solution is great for new product promotion, online product
ordering and product survey.
The Celcom 3G Connect Card provides both voice and data access via any
laptop. The stable connection capability and affordability of this card make it one
of the better connect cards available. Data roaming with data capable mobile
phones via 3G/GPRS is available in over 100 countries and operators worldwide.
Customers enjoy the best rates available when they roam.
Global voice and data coverage from Celcom and Vodafone can cross all the
problem of geographical borders, communication barriers and travel distances.
With the business solutions provided to customer through this alliance, the
advantages of accessibility via the Celcom and Vodafone partner networks help
customers build their business empire while travel.
The Palm Treo is act like a personal assistant that fetches email, downloads
attachments, get Celcom customers on the web instantly and many more. Minus
the unnecessary small talk, so the customer of Celcom can get on with the
important stuff, like building their empire.
Other than that, to improve internal system, Celcom use IT Help Desk which
operate 24 hours a day. All complaints from customers can be made via online
system. Three notifications will be sent to the three respective parts which is IT
department, HR department and to the top management (HQ) of the Celcom
company. This will help Celcom itself to making a decision for their future
organization.
3.0 CONCLUSION
4.0 RECOMMENDATION
In order to compete with their competitors and survive in the market place,
Celcom need to make sure that their system and managing is the best among
the others. The first recommendation to improve the business of Celcom is by
build their system effectively and efficiently. It can be achieved by study of the
internal and external environment of market place. By using this method, Celcom
can improve their sales and productivity. For example, other than using IT Help
Desk to improve internal environment, Celcom also can modify their process flow
and notifications so that it can be faster and easier.
Besides that, Celcom also need to improve their coverage. There are a few areas
that still face with the problem of coverage. Do the case study more frequently to
recognize the changes that happen in the public. Increase the limitation for every
base station if necessary in order to make customers can excess to the internet
more easily without coverage problem.
The other recommendation is by create and increase the loyalty of the
customers. Celcom can make a loyalty program such as a special club for their
user. Offer more discount to the customer by creating a Celcom customer card.
The longer the customers stay using Celcom, the more they will get the discount.
So, by using this method customer will be more interest to Celcom rather than
others.
5.0 APPENDICES
The table shows that Celcom is more efficiency compare to other company in
many types of term. It also shown Celcom create competitive advantage where
the customer place greatest values compare to competitor.