HOW MAXIS IMPLEMENT THEIR STRATEGY FORMULATION

 

Maxis’s main challenge today, of adapting effectively to a rapid changing and often hostile environment of telecommunication networking industry. Everything change too fast until the company is unable to cope with rapid pace. In this section, we will describe about the implementation of change in Maxis in order to deal with changing market environment and to shift to the updated telecommunication technology.

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To excel in today’s business climate, organizations must continually deliver differentiated products and services that provide high business value. Even the most successful enterprises can experience failure because they unsuccessfully manage change in software development. With more demand than ever for IT to quickly and accurately achieve and support corporate objectives, IT organizations must cope with a continuous barrage of changes—changes in product requirements, technology, development processes, and deployment environments.

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Thus, there are few strategies implementation that had been done by Maxis in order to strive in this market climate such as :

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• The need to reinvent the business as the business environment changes

As the competitive pressures increase, the company needs to rethink his business strategy and position in the value chain. One solution – contributing both to differentiation and cost leader strategies – is to simplify the value chain and move closer to customers through mobile services (Ollila, 2000).

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• The need to be able to focus on the most differentiating activities

Most operators still want to differentiate with new mobile services, content and portals. All of these require extensive efforts to develop, launch and market with increasing time-to-market pressures. Being able to focus on these most differentiating activities is a significant benefit – while the technological environment is becoming more complex (Moorehead, 1997).

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• The need to improve operational efficiency

No matter of the operator's competitive strategy, there is a need to increase the cost efficiency of basic technical operations. And after usual process optimization and competence development, the main source for cost efficiency is economies of scale. For very large operators and international operator groups it is possible to gain significant economies of scale in-house. Small and medium sized operators should consider also whether a managed service provider could deliver benefits for their business by creating higher economies of scale on their behalf (Schermerhorn, 1997).

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• The need to improve quality of services and operations

If Maxis manages the operations and network properly with necessary capacity increases and modernization, the quality of service will be meeting the customer's expectations. However, the quality is unlikely to be a differentiating factor as all the operators can deliver the same. But the new mobile services and applications provide excellent possibilities for quality differentiation and grabbing market share – in a certain time window (Handy, 1989). The operator should make the most out of this with the chosen help of the experienced managed service provider.

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• The need to manage technology and operational challenges

In traditional operator-vendor relationships, the operator has responsibility for deploying mobile services - network technologies, billing and customer care readiness. This integration responsibility has a fair share of risk involved in it. Managed services contract can be set up in a way to reduce this technology and operational risk, linking service provider’s incentives to operator’s business objectives. The importance of these drivers differs from one operator to another, so each of these drivers needs to be considered carefully. Since outsourcing of technical operations is such a major change, it should be based on the correct and well considered reasons.