Case Study of P1

 Case Study of P1 Essay

1 . zero Introduction

1 ) 1 Business Background

Packet One Networks (Malaysia) Sdn. Bhd. (P1) was launched upon August 18, 2008 as being a subsidiary of Green Bundle Bhd, which is a leading global developer of Next Generation Mobile Broadband Networking Solutions. P1 is Malaysia's initial and leading WiMAX telecommunications company together with the country widest WiMAX network and that represents the first large-scale commercial application of Mobile WiMAX in Southeast Asia, as well as the initially large-scale application of an 802. 16e WiMAX network outside the house Korea. P1 was among four firms awarded installment payments on your 3 Gigahertz spectrum licenses by the Malaysian Government to deploy WiMax services during Malaysia (www.p1.com.my, 2009).

1 . 2 Industry’s vision

P1 objective is to become the industry leader in wireless internet connection industry. To accomplish this, P1 are now putting all their effort upon broadening cellular broadband online connectivity across the location in order to capture more industry. (www.p1.com.my, 2009). 1 . several WiMAX

WiMAX is a great abbreviation of Worldwide Interoperability for Microwave Access. It is a standard-based technology enabling delivery of last mile cellular broadband get as an alternative to cable television and DSL. WiMAX allows deliverables of bandwidth among two points or perhaps between a place to multipoint to consumer. The usage of WiMAX requires certain bandwidth of spectrum to get allocated to the service provider, determined by the channeling plan permitted and released by Malaysian Communications and Multimedia Commissionпј€MCMCпј‰ (www.greenpacket.com, 2008). 2 . 0 Michael Tenir 5 Makes

2 . you Threat of recent entry

Telecom industry is one of the industries which may have the biggest barrier to enter. First of all, to enter this kind of industry takes a lot of cash to protect high set equipment and innovation cost (Gupta. A, 2008). Secondly, the possession a telecom license can be one of the biggest limitations to access, because govt may refuse to give license to owner to operate their very own business (WiMAXian. com, 2009). Thirdly, adverts to create understanding to open public are very costly; it is very hard to bring public interest if there is zero enough advertisements since there are several players in Malaysia. Additionally, skilled individual capitals have to operate the organization (Gupta. A, 2008). Lastly, high leave barriers afraid off shareholders in get into this business, concluding the threat of new entry is extremely low. installment payments on your 2 Competitive rivalry

Since Internet takes on a very important role in human's daily life, a lot of people have to in touch with internet every single day. So , to draw more members, competitors have to lower down all their price and give more benefits in order to make it through since they include invest a huge capital through this business that with excessive exit hurdle due to its specialize equipment.

You will discover more than 12 internet service companies (ISP) in Malaysia. Normally, new carriers are used to take low price strategy to attract buyers, which cause a price conflict (wwwen. zte. com. cn, 2010). Besides that, these ISP do their promotion and marketing frequently as everyone in major town can see that every day and everywhere. The fierceness of frequent advertisement had leaded to an advertising war between P1 and Streamyx last year (Risen. L, 2009). Additionally, High client churn level shows that any kind of unsatisfaction in term of speed, balance and price will cause consumer to switch to other service provider (Gupta. A, 2008). It could conclude that the competitive competition in internet sector is highly rigorous.

2 . a few Bargaining benefits of buyer

Together with the increased choices of broadband service in Malaysia, the negotiating power of customer is rising; this qualified prospects into customers seeking low prices but have better services. Alternatively, the moving over cost from one to another Internet service provider is relatively low, customers can easily switch to different service provider conveniently, and this improved the bargaining power of purchaser.

2 . 5 Bargaining benefits of supplier

P1 need to have...


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