Porter's Five Forces Of Maxis

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3.2 Industry conditions (Porter's Five Forces Analysis)
Five forces which would impact an organization's behavior in the market. Understanding the nature of these forces provides organizations the required insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998).

3.2.1 Threat of new entrants (high entry barriers)
High capital investment for competitor entry into telecommunication industry. Companies in this industry incurred high fixed costs and spend fairly large amount of capital on network equipment and maintain development. Besides, technologies are also considered as barriers for new companies to enter the market.

Maxis's reputation has been built around their superior customer
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There are many alternatives product such as fax, email, and internet which enhance the bargaining power of buyer to the mobile service provider.

For the moment, high level of competition between the major telecommunication companies that exists in current market leads to low switching cost for the buyer to change their mobile service provider. Customers are highly price sensitive and easy to switch brand. It also means that customer will not be faithful to Maxis if they find out other brand provides better services than Maxis so they will change brand.

As a result, this contributes to concentration of the buyers industry. Besides this, the buyers have high switching cost in this industry. As a result, the industry is more profitable when the buyers have low bargaining power which means the buyers are unable to affect the setting of prices in the industry.

Maxis has came out with many Business Value Plus Plans for business people. It has so many methods to help save money when talking on the phone. Maxis wants to make sure that their customers can enjoy using Maxis services with a much lower price than other
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