Empirical Investigation Among Malaysian Customers: An Analysis Of Digi Telecommunication Berhad

Macro Environment Analysis

Discuss About The Empirical Investigation Among Malaysian Customers.

In the case of business enhancement, strategic decision making is the right way to make the profit and the increase the sustainability of the business. The process of vitality and an increase in information from the external environment of the company is important to analyse the competitors in the market (Osman et al. 2012). The strategies are very important in that case that provides extra efficiency to the company that other companies haven’t achieved this.

The latest trend introduces by Digi is 4G+ and this is a kind of innovation that initiated by the company in Malaysia. The other changes are in-route line and on-road digital platform making, where people, who connected with their service can obtain any of the facility from their portal or site. This is something that changes the mode of telecommunication use in Malaysia.

In case of this paper, the basic addressing approach and use of target market are important for the development of the business. The basic activities are consist of the entire target market and marketing mix and deliver the strategic outcome that enhances the product activity as well. Digi Telecommunication Berhad is one of the strongest mobile connectivity and internet service providers in Malaysia. The company has more than 20 years of experience and 12 million subscribers (New.digi.com.my 2018). The empowerment of improving the lives and build societies is the key process that delivers in form of revenue.

In the telecommunication industry in Malaysia; the substitute in the market is large. One of the market substitutes is TM and it is the government-owned. TCP based infrastructure can bring cost savings to the company and it will allow the company to abstract the key value-added services from the physical layer (Yusof et al. 2017). Substitutes of Digi offer various ranges of services to the customers.

Telecommunication industry costs as high as the capital required to establish the new company in a new market is high. The telecommunication industry in Malaysia requires a huge investment of resources and capital. The existing carriers have a major cost advantage as the outcome of it is market regulation dissuaded.   

In Malaysia, the presence of telecommunication providers is large and the switching cost of the customers is low. Buyers of the telecommunication companies are of two types; individual buyers and enterprise customers (Tang and Tan 2015). Cost of product relative to total cost is high and the product differentiation is high. Competition between the buyers is high. In Malaysia; telecom providers in the market give cheaper price with product variants.

Micro Environment Analysis

Suppliers in telecommunications are the modular architects and open standards. If the suppliers move away from the vendor relationship, the telecommunication companies will be in trouble. The switching cost of the suppliers is heavy for the Malaysian telecommunication companies.

In Malaysia; competitive rivalry in telecommunication is high as in Malaysia; Telecom Malaysia, Celcom, Maxis Communications and Digi Telecom are the major players. Competition among these companies is high as the people have options to switch to any other provider at any time.

Table1: Telecom service providers market share in Malaysia

(Source: Analysismason.com 2018)

Above table shows the information that Digi is the market leader in the competition having the highest market share in Malaysia in telecommunication.

The dedication of the team is the key approach to deliver the work process with integrity and accountability in telecommunication solution in Malaysia.

Signify the opportunities and maintain a good relationship with employees to inspire them and make the best place of work in Malaysia.

Four major strategies are there for the development of the organisation and due to the development, most of the telecommunication companies are lagging behind that. The future-forward actions are important in that case and it grows and outpaces data-centric digital world. For keep going the industry ahead of engagement with the customers is important and relevant for the effective nature of the company (Faziharudean and Li-Ly 2011). To become the customers’ favourite partner and being the most efficient operator in Malaysia, the company has made the position in between. This will provide them with enough boost and confidence to work more and get the gel with employees and customers for the development of the organisation. The employees of the organisation are practising responsible business conduct and the conduct will find them enough boost for the development of the business to interact with customers in a proper manner and try to understand what they need. Lastly, they maintain a good team and they have some good leaders too for the management of the team. The team building and working together is important and that deliver enough opportunity for the company to engage good social relation in that case.

The strategy based on the 7 different aspects of business like structure, system, strategy, skill, staffing, and style and all these aspects are trying to maintain the core process of shared values. In the case of Digi communication, innovate and evolvement of the product is important and most profitable growth can be achieved through the process (Osman et al., 2011). The initiatives taken by the operational efficiency is important and operating cash flow in the company persists through the process. In the case of strategy, the expansion to improve the networking system is the key process that maintained by the company for future. The commitment to employees showcases the staffing process.

Internal Environment

There are some proposed actions that need to be taken in that process. The easy way of customer understanding and practical providence of making the deal is the most concern aspect of the business. In the future, the bottom line enhancement and balanced optimization of higher level customer satisfaction is the key process in business (Rahman, Haque and Ahmad 2011). The corporate structure of Digi is aligned with the better processing in strategy so in most of the cases of maintenance, prohibition, policies and renting process is the key matter in that case. In case of deep green system and operating efficiency system or in case of Digi supply chain health, safety, environmental security and the applied green practice is the key issue that can be changed in this process. In the case of style, employees positive work culture, clear responsibilities, empowerment and job scopes are there.

TOWS

As stated by Gillespie and Goddard (2017), market development strategy is the growth strategy where the organisations can seek to sell the existing products or services into the new markets. Digi Communications can start the business in new geographical places by setting up the towers and executive offices for giving the telecommunication services. Digi provides calling services, internet usage services to the new market where the market. New customers can be offered with service packages (Bidin and Yunus 2017). In the new market, Digi needs to start with new distribution channels where the customers can have the internet and mobile connection from the company executives. The market development of Digi needs to be improved as they want to be the best telecommunication process in Malaysia. The increase in customer centricity by some percentage is important for the development of the business. More business opportunity and sales will increase if the product development and marketing improve. In Malaysia, some of the remote places where the internet and mobile connectivity is not strong are Sugai, Pahang, Johor and Terengganu. Digi will try to provide the best network in such places where the new customers will have the mobile connection facility. In addition, Digi can start for low pricing strategy in the new places to attract the large numbers of customers.

Digi is affirming that they are in market infiltration as they already recognized fit in this Malaysian Telecommunication market with their current inventions. This had originated from a condition where the development is inferior and only directing in its individual market. This is what labelled in the Ansoff’s Product/Market matrix theory. Rendering to the model, the business might not cultivate more or make considerable turnover without mounting to the next phase. The following phase optional in the concept is by-product expansion or market growth. Market growth means they can stage into new marketplace such as Singaporean Telecommunication market with their current invention.

Mckinsey 7S Strategy

Market penetration is the growth strategy of the organisation focuses on increasing the growth of the business in the existing market and it helps to increase the customer base of the organisation (Sapolsky et al. 2018). Market penetration increases the market share of the current services or products which can be achieved by competitive pricing or the differentiation of the services or the sales promotions. Digi has one of the largest sections to give the internet services or mobile connection services. As Digi wants to make some markets penetration, so they have to identify the political, economic, social and technological aspect of the particular country. The posting of the other similar companies and the view of competitive marketing is important in that case. Digi will have the secure domain of growth markets in Malaysia through market penetration and Digi can restructure the mature market just by driving out the competitors (Liew and Song 2017) Market penetration strategy needs the aggressive promotional campaign and it is supported by the lower pricing where the new customers will be attracted. In India, Jio Mobile service has taken ‘freemium’ strategy for alluring the customers and Digi in Malaysia can start the same strategy in order to increase the customer base.

Geographic: Digi Telecommunications can segregate the market using the location and region. Digi can target the customers geographically where Digi has its market. Mainly urban sections of Malaysia will be targeted in geographic regions, Kuala Lumpur, Johor Bahru, Kota Kinabalu, George Town and Ipoh.

Demographic: Digi can segregate the market using the age, gender, occupation and socio-economic group of the customers in Malaysia. Mainly the young generations and the professionals can be targeted as they use internet and mobile services most.

Psychographic: Customers who prefer to purchase the internet services and mobile services. Fixed-line telephony is another offering of Digi. Digi can divide the market using personality, lifestyles, attitudes and class of the customers (Mansournia 2018).

Behavioural: Customers want a value for money services from Digi where Digi will provide constant network service and high-speed internet. Digi can segregate the market rate of usage, benefits sought, loyalty status and readiness to purchase.

Primary target market

Digi Telecommunications should target demographic segment mainly as they will target the new generation who are aged between 15 and 25. In Malaysia, Digi can target the premium and the upper-class young generation who value time and paying capacity. This new generation uses more internet services in daily life to connect with their friends on social media, they watch videos and they do chat.

SWOT

Secondary target market

The secondary target market of Digi Telecommunications will be the behavioural segment where Digi will segregate professional customers using their rate of usage. Some of the professionals of the private sector use heavy internet and calls. Professionals can be giving free calls in postpaid connections. The Generation X and Baby Boomers will be targeted strategically offering steady mobile calls and good internet speed.  

In the case of value positioning, Digi Telecommunication can be evolved as one of the best companies in telecommunication. The set objectives are important in that case and other companies are not taking the far-fetched strategies also and that will evaluate the company’s position. But the company must cater to the high price range and high quality is also provided. U Mobile, on the other hand, low in cost and quality. MVNOs has high quality comparing to U Mobile but the price is significantly high. The major competitor of Digi is Maxis and both will implement some strategic plans but the way business has been formulated by Digi is ethical and measurable to get the best outcome through the process.

The company has some good selling procedures that make difference from others. These are the values that segment the company from others. The best post-paid plans are here in Malaysia and that is the reason most of the companies are lagging behind them. The process of simplicity, innovation and diversity for ideas are also important in that case (Solaymani and Kari 2017). That is the reason the company has got numerous numbers of awards from Malaysia.

In most of the parts in Malaysia, Digi spread their business and make the ultimate profit from most of the places. The solid 4G+ network is the key issue in that manner and that supposed to make some good target zone where they have placed their campaign over this (Tang and Tan 2015). The progressive nature of the business is important in that case and they have identified the zones from this.

The pre-paid and post-paid service options are important for the company. The value-added services that innovation in product, getting the digital screen at road also and call wait and call hold along with the 24-hour recharge facility is important in that case (New.digi.com.my 2018). Innovative product culture and implement some new 4G+ concept in case of having market penetration. Ringtone, voicemail services, easy bill payments are the option that included in that case to achieve the best possible way to align the process.

The competitive pricing strategy can be used in that matter and entire pricing mechanism is related with that matter. As the company will try to enhance their business, thus they need to recommend their business protocol and set a range in price, so the quality will be delivered as the market price match that. The prevailing market condition and the process of tax relation is the way to determine the suitable price for the products (Tang and Tan 2015). The low-cost pricing is the main concern in that case.

Traditional and networking management is very important in that matter and companies have to understand for their own benefit (Tang and Tan 2015). The brand name is the big promotional factor and the company uses that for their marketing. In social media, and television commercial the advertisement and the highlighting facilities are important in that aspect. In case of engaging 8% customer with the product, the company need to attain the highest promotional level for this. This is the only option that company can reach to their customers within a short period of time. The necessities have been initiated by the company and the product deliverance will improve and passive promotion through the people, will start. The quality of the product is also important at any time of that section and that will highlight a change in their marketing strategy as well.  In case of engaging more people with the product, some of the advertisement campaigns are needed for the regional market analysis and good market image can be created through this.

The maintaining process of the business to make the easy way of marketing and create a customer base that evaluates the revenue generation for all over the year. The strategic change in innovation and make note of all the best processes are important in that matter. To make the better market in other countries, some of the issues like tax, legislation and policies, stakeholders, demographic, behavioural aspect of people over there and the support from the government for the new business changes are important in that case. The help in other business market provided them with enough opportunity to deal their business in between different people and policies. The positional aspect and competitor analysis are also important and that also included in the process.

The most important aspect as per the objectives concern is the people, the company targeted in for their business market. In case of people, as the company wants a change their market enhancement within a year and makes an objective to raise 3%, thus activities in people is important and that can help to make the future of the company. The targeting people are different in genre and all they have the different need so the process of business territory and networking the business is important. The process of understanding the nature and behaviour of the people is also important in that case. The process of marketing depends on the demographical, cultural and positional aspect of the people and in that case, the situation is quite important for the company so that they enhance their business territory and deliver some quality products that make a good networking system with the distribution process and get flourish in business.

The environmental change is depending on the set of business planned by the company. So the proposed situation is important in that case. In case of the physical environment, all aspects of the subscriber base are needed and managed situation of company growth in the remotest location in Malaysia can be reached by the network of Digi.

In the case of meeting objectives, a proper action plan is required for Digi.

The control over the pricing strategy and make the quality product at low cost is the main control that company has to implement. The control over the market position and evaluation of product development by the effective changes in innovation is the key matter in that case. The strategy of the low cost of pricing strategy is important in that matter and better product evaluation and has the good market approach in Malaysia.

Conclusion

Therefore it can be concluded that most of the business strategies have taken by Digi are effective and the impact of these helps the entire market of Malaysian telecommunication. The process of customer handling and communication is also important in that case and organisation has to understand the need and goal of the customers. The introduction is linking with the process flow of the Digi Telecommunication and that includes all the possible strategies and implementations has taken by them. This is the main purpose of the project to understand the eventual marketing strategy has taken by Digi.

The sense of better planning and strategy is important and the company is processing the entire thing for the better formulation in future. There is some contingency planning is ready as back up but the formulation needs to be so effective, that can change the dimension of the business.

The business process strengthens the marketing strategy and also try to mitigate the objectives within a year. The positive approach in that process and the relative telecommunication enhancement in Malaysia is important in that case and Digi has taken the initiative to strengthen the business at its best. The future positioning of the company is high in quality as well as cater high-class customer with a good price range and that is the main positioning of the company.

The aspect of critical thinking is based on the objectives and possible proximity of achieving 8% new customers in 2019. The process needs more productive promotional strategies for Digi. The strategies need to be relevant enough to peruse the process in the right way.

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