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Telco's Five Forces

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5. COMPETITIVE PROFILE MATRIX (CPM) • A powerful strategic analysis tool to compare the ‘Strengths and Weaknesses’ of all the major players in a particular industry. It shows a clear picture of the competitiveness of a firm relative to its competitors. The CPM score is measured on the basis of ‘Critical Success Factors; CSF’, each factor is then evaluated in the same scale for accurate comparison which means the weightage will remain the same for all the players, only the rating varies. The outcome of CPM facilitates a firm’s decision-making process. Companies can then decide which strategies they should pursue to strengthen and protect their businesses. i. Analysis of Strengths and Weaknesses (SW) of the Big 3 Telcos. • This analysis can help a telco uncover the opportunities that it is well-placed to exploit. By understanding the weaknesses of its business, a telco can manage and …show more content…

Once the key forces are identified, a firm will then be able to strategize to best cope with the industry challenges. The nature of competitiveness in telecommunications industry can be viewed …show more content…

Threats of New Entry - The barrier to entry is mainly due to regulatory policies by the Government. All potential entrants will need to obtain a license from the MCMC which is difficult and expensive to get in view of the strict requirements and procedures. Moreover, the Govt has the tendency to grant exclusive rights for certain projects to tried and tested players which will also be a hindrance for potential new entrance. E.g. Telekom Malaysia was given the exclusive rights to deploy the HSBB infra which it launched in 2010. Capital is another barrier as it is necessary for a potential player to have large and sufficient financials, to the tune of RM billions, mostly for telecom infra to be able to even join the

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