External Environment In Telecommunication Industry

The external environment consists of competitors. “Competitors are defined here as firms operating in the same industry, offering similar products, and targeting similar customers” (Chen, 1996, p.100). A competitive environment will affect the ability of a business to make profits and gain customers. This is due to the reason that competitors will continually seek to gain an advantage over each other by differentiating their products, services as well as quality. The more sellers of a similar products or services, the more competitive the environment is. Nowadays, there are many companies competing with each other to be at the top and leading the telecommunication industry such as Maxis and DiGi. However, Maxis is the leader within telecommunication

The rapid growth of technology can affect the organisations negatively or positively because the innovation is growing rapidly and unstoppable. Therefore, each of the organisations should be abreast and caught up on time regarding the new development of the products and services provided in the market. According to Chong, Choy and Wong (2009), they discover that the telecommunication industry in Malaysia is rapid growing in the recent years, particularly with the introduction of the latest technology.
An example of technology exist in telecommunications industry is greatly related to the cellular data network services or as known as wireless network. This service comprise from first-generation (1G) network to fourth-generation (4G) network, or called as 4G LTE. It is noted (Osman el.al 2012) that the 1G network has introduced to Malaysia in 1985, by Telecom Malaysia Berhad, but this network has been replaced speedily with 2G network in the middle of 1990s. The rapid change of wireless network technology can be seen as it changes only within approximately 5 years in Malaysia. According to Mohd (2008), he said that “Planning for 3G or 3rd Generation Mobile in Malaysia commenced in May 2000.” After the implementation of 3G, this service continue to grow and bring huge changes in the telecommunication industry as 3G started to provide internet service to those consumer who holding wireless device. Until 2009, wireless network technology once encounter another huge strike of change with the announcement of 4G LTE, the new development of technology in telecommunication field. Until today, the expansion of 4G is now the one of the fastest and latest technologies currently available with higher data consumption and it also increased connectivity