Disadvantages Of Maxis

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3.0 Situation Analysis
Situation analysis is a systematic evaluation and collection of present and past political, economic, social, and technological data. It is aimed at the identification of external and internal forces that may influence the choice of strategies and organizations performance, and the assessment of the organizations future and current opportunities, threats, strengths, and weaknesses.

3.1 General environment analysis
General environment analysis includes factors such as demographic, economic, political and legal, sociocultural, technological, global and physical environment that generally affect everyone in the market in a similar manner.

3.1.1 Demographic
Maxis invested RM1.24 billion to develop and upgrade their 3G
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The statistics showed that more than 50% of the Malaysia's population is under the age of 25 years old, a good-sized number of whom enter the 'phone owning' category each year. It is because the youth segments are now the fastest and largest growing segment.

Maxis is a leading regional content player with 39.2% of non-voice revenue as part of mobile revenue and 7.1 million active mobile internet users, more than 50% of its customer base. As a result, Maxis became the most attractive in high-growth, diversifying the market base and low-penetration markets as well.

3.1.2 Economic
In year 2010, Malaysia's economy was expected to grow. This improved outlook is expected to stimulate business spending and consumer for telecommunication services. Malaysia determine to achieve a broadband household penetration rate of 50% by 2010 for Maxis growth in the immediate future.

The Malaysian telecommunications industry remains flexible even though the challenging global economic climate. In 2009, the overall growth of the mobile industry was satisfactory and the mobile subscriber penetration crossed
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Maxis was taken private in 2007 and de-listed from Bursa the same year. In a challenging global economic climate in year 2009, Maxis delivered another strong year.

3.1.3 Political and Legal
The government had chosen Maxis Broadband Shd Bhd (Maxis) and Telekom Malaysia Bhd (TM) at 14th December 2010 to sign a landmark of 10 years agreement for TM to undertake the High Speed Broadband (HSBB) services to Maxis. As we know that, this project was able to offer more quality broadband services.

Malaysia government limits the level of playing field for foreign players in the industry. The country's major telecom players, Celcom and Maxis won the bid together with subsidiary of MiTV Corp and Time Dot Com and for the 3G license. However, DiGi was not awarded a 3G license as it has a high foreign ownership.

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