TELEKOM MALAYSIA BHD

Introduction of company

Telekom Malaysia Berhad (TM), Malaysia’s broadband champion and leading integrated

information and communications group, offers a comprehensive range of communication

services and solutions in broadband, data, and fixed-line. As a market leader, TM is driven by

stakeholder value creation in a highly competitive environment. The Group places emphasis on

delivering an enhanced customer experience via continuous customer service quality

improvements and innovations, whilst focusing on increased operational efficiency and

productivity.

Leveraging on our extensive global connectivity, network infrastructure, and collective

expertise, TM is well positioned to propel Malaysia as a regional Internet hub and digital

gateway for South-East Asia. TM remains steadfast in its transformation into a new generation

communications provider to deliver an enhanced and integrated digital lifestyle to all

Malaysians, and opening up possibilities through connection, communication, and collaboration,

towards our shared vision of elevating the nation into a high-income economy.

Type of business Public

The type of business of Telekom Berhad is public

company

Industry Telecommunication industry

The sector industry of Telekom Malaysia is a

Telecommunication industry.

Founded 12 October 1984

. Established as the Telecommunications Department of

Malaya in 1946, it was privatized in 1987, and listed on

Bursa Malaysia in 1990.

Headquarters Menara Telekom, Kuala Lumpur, Malaysia.

Menara TM strikes the perfect balance between

inspirational architecture and state of the art facilities

while incorporating an environmentally-friendly

workspace for all of our staff. With a definitive structure

that resembles a young bamboo sprout with unfurling

leaves, Menara TM proves to be more than just an

intelligent building.

Key people Dato Seri Zamzamzairani bin Mohd Isa (Group CEO)

Products or services Telecommunication services

focus more intently on its core businesses of Internet and

multimedia, data and fixed-line services

Net income

Total assets

Employees 26,667 (2011)

Website www.tm.com.my

Vision and Mission Analysis

Vision

"To be Malaysia’s leading new generation communications provider, embracing

customer needs through innovation and execution excellence"

Vision Analysis

From the Telekom Malaysia vision it means that the company will give new breath in

communication provider and improvise their products with the customer needs.

Mission

Strive towards customer service excellence and operational efficiency

Enrich customer lifestyle and experience by providing innovative new generation

services

Improve the performance of our business customers by providing high value information

and communication solutions

Deliver value for stakeholders by generating shareholder value and supporting Malaysia’s

growth and development

Mission analysis

No Components Analysis of Mission

1 Customers

Telekom Malaysia Berhad constantly

pushes boundaries to remain ahead in the

industry. By focusing on customer

satisfaction, Telekom Malaysia enhances

the quality of experience for their valued

customer at all touch point.

2 Product or services

In the Telekom Malaysia Berhad mission,

they will provide innovative new

generation services means, TM will

produce of their product and services that

follow current situation.

3 Markets

4 Technology

5 Concern for survival, growth and

profitability

Telekom Malaysia Berhad concern for

survival, growth and profitability where

6 Philosophy

7 Self-concept

8 Concern for public image

9 Concern for employees

Competitive Advantage/ Strengths of the Company

1. Strong market position

- Telekom Malaysia has a strong market position in the fixed line and broadband

markets in Malaysia. It is the largest integrated communication solution provider in

Malaysia and one of leading communications companies. TM also Malaysia leading

broadband services provider. In addition the group is a leading provider of wholesale

services in Malaysia. Telekom Malaysia strong market position has enabled it to enter

into a public private partnership agreement initiated by ministry of energy, water and

communication to launch the national high speed broadband (HSBB) initiative.

Strong market position while providing a competitive advantage to the group also

allowed it to gain flagship contract like HSBB.

2. Diverse customer base

- The group's revenues are diversified across different customer segments. It serves six

principal customer segments: consumer, small medium enterprise (SME), enterprise,

government, wholesale and global. Wholesale focuses on bandwidth and other

infrastructure to Telco’s, internet service providers, managed network service

providers, application service providers, and global operators and data centre

providers. Global provides satellite, terrestrial and submarine fiber optic connectivity

across Asia, Europe, the Americas, Oceania, the Middle East, and Africa.

- The group's diverse customer base increases the asset utilization as well as allows it to

diversify the business risk associated with operating in a specific customer segment

3. Market recognition

- TM has strong market recognition. The company received a total of 22 awards in

FY2009. In March2009, TM was honored with The Brand Laureate Conglomerate

Award 2008-2009 in recognition of its stable of successful brands that have

strengthened the group’s brand identity, while also contributing to Malaysia’s equity. The

Brand Laureate is the highly regarded branding awards in Asia-Pacific.

- TM was awarded with the Trusted Brand (Platinum) award for its Streamyx broadband service by

Reader’s Digest in May 2009. During October 2009, the company received the Data Centre &

Hosting Services Provider and Managed Connectivity Services awards for the

second consecutive year at the 8th Annual Computerworld Malaysia Readers Choice Awards.

In November 2009, TM was presented with the Best Virtualization Strategy award by

Hitachi Data System (HDS) for its use of storage virtualization to compress data at its

data centers. Strong market recognition enhances the brand image of the group, thereby

bringing more business to the company.

The core strategies of Telekom Malaysia Berhad

Differentiation Strategy

Strive towards customer service excellence and operational efficiency

TENAGA NASIONAL BERHAD

Introduction of the company

Tenaga Nasional Berhad (TNB) is the largest electricity utility in Malaysia and a leading

utility company in Asia. Listed on the Main Board of Bursa Malaysia with almost RM87 billion

in assets, the Company’s more than 33,500 employees serve an estimated 8.3 million customers

in Peninsular Malaysia, Sabah, and Labuan. TNB has been keeping the Lights On in Malaysia

ever since it was set up as the Central Electricity Board in 1949, powering national development

via the provision of reliable and efficient electricity.

NB’s core businesses are in the generation, transmission, and distribution of electricity.

In Peninsular Malaysia, the Company supplies households and industry with electricity generated

from six thermal stations and three major hydroelectric schemes. It also manages and operates

the National Grid which links TNB power stations and IPPs to the distribution network. The grid

is connected to Thailand’s transmission system in the north and Singapore’s transmission system

in the south. In East Malaysia, TNB has 80% equity in Sabah Electricity Sdn. Bhd. (SESB),

which manages the Sabah Grid.

Other than its core business, TNB has diversified into the manufacture of transformers,

high voltage switchgears and cables; the provision of professional consultancy services; and

architectural, civil, electrical engineering works and services, repair and maintenance. The

Company also engages in research and development, property development and management

services. Tapping into opportunities available overseas, TNB is making inroads into emerging

markets, focusing on the Asia-Pacific, Middle East, and North Africa regions.

Type of business Public

Industry Electrical power

Founded 1 February 1990

Headquarters Kuala Lumpur, Malaysia

Key people Leo Moggie (Chairman)

Dato' Ir. Hj. Azman bin Mohd (President and CEO)

Products or services Electricity generation, transmission and distribution

Net income

Total assets

Employees 29,210 (2008)

Website www.tnb.com.my

Vision and Mission Analysis

Vision

"To Be Among the Leading Corporations in Energy and Related Businesses

Globally"

Vision Analysis

Mission

"We Are Committed to Excellence in Our Products and Services"

Mission Analysis

No Components Analysis of Mission

1 Customers

2 Product or services

3 Markets

4 Technology

5 Concern for survival, growth and

profitability

6 Philosophy

7 Self-concept

8 Concern for public image

9 Concern for employees

Competitive Advantage/ Strengths of the Company

1. Vertically integrated operations

- Tenaga Nasional Berhad

2. Brand customer portfolio

3. Strong market position

4. Supporting subsidiaries operations

Porter Five Forces of Telecommunication Industry

Barrier to Entry

The barrier to entry into telecommunication industry is mainly due to the regulation and

policy by government. Every potential entrant will need to obtain a license by Malaysian

Communication and Multimedia Commission (MCMC). However, it is difficult and expensive to

get an approve license from MCMC due to the strict requirements and procedures. In additional,

solely right for certain projects are given by government to the existing entrants will be also a

threat for potential entrants to compete in this high competitive industry such as the partnership

of submarine cable for the broadband service at year 2001 and also High-Speed Broadband

(HSBB) which will be launched at mid-year of 2010.

Capital requirement is usually an important issue to build up a firm which is has high

capability to compete in the industry. Whereas, telecommunication is a high competitive industry

in order to gain large market share. Thus, potential entrants have to ensure the sufficient financial

resource since having huge capital will be a competitive advantage to compete. This probably

need of few billion Ringgit Malaysia for the license and infrastructure which are normally limit

the pool of likely entrants.

Supplier Power

A powerful supplier may exert bargaining power by increase selling price or reduce the

quality of the products. However, powerful of a supplier must also depend on the position of

market situation.

A group of suppliers is powerful when the products they provide are differentiated or it

has built up by switching cost. These may arise when there is an occasional requirement bythe

buyer in this industry such as high invested in submarine fiber optic cable, and replace the

copper cable and old satellite dishes that may provide reliable broadband connectivity. This may

cause buyer tie it to particular suppliers. High competitive environment causes exist entrants

need to invest in high modernization technologies to enable the company to support and compete

in this industry. Therefore, it is crucial for the service providers to make sure the quality of the

technology equipment, yet it makes the supplier group become more powerful.

Buyer power

A group of buyers will be considered as powerful when they able to force down prices,

demand higher quality and play competitors off against each other. Nowadays, there are more

demanding of high speed broadband and after sale service, and it create relatively high

competitive among competitors. Every entrant will aspirate to gain the largest market share,

hence to gain more market shares entrants will want to get the consumers attention by bring out a

series of attractive promotions packages. This is to help firm to absorb more and more market

shares, and yet promote their branding also. As consequences, competition among each other

will benefit the consumers who can enjoy the lower price broadband service, and therefore,

consumers become more powerful due to the competition among the service providers.

Threat of Substitute

Substitute product is an alternative choice for consumers to choose to purchase.

Substitute product comes into play when there is high growth industry or high competitive

industry. As mention earlier, consumers have become more demanding in quality broadband

service and this create an opportunity for new entrants to provide a substitute product for

consumers in lower price or better performance than the existing one.

Degree of Rivalry

Rivalry among existing competitors takes the familiar form of jockeying for position.

Intensity of rivalry may arise when the competitors want to lead in a high growth industry such

as telecommunication industry.

Product that lack of differentiation is associated with high intensity of rivalry. Thus,

competitors must be able to differentiate its product compare to other competitors. Indeed, brand

identification of a product tends to constrain a rivalry. This means that popularity of a brand

name of a product will probably make the product differentiation even the performance is just

equal. For example, most of consumers will probably think of TM Net Streamyx when they

would like to subscribe a broadband service. This is because popularity of the brand name which

makes consumers feels more reliable. Thus, high level of product differentiation or maybe brand

identification can confine the intense rivalry and to lead in the industry.