Telekom Malaysia outlines five-pronged strategy to be more profitable
Telekom Malaysia, the Malaysian incumbent in the telecommunications market, yesterday outlined a five pronged strategy to be more profitable.
To recall, the company is the market leader in the fixed line business and in the Internet dial-up service plus in the nascent broadband sector. It struggled in the mobile sector and digested a couple of smaller companies over the last couple of years. Its last acquisition of Celcom Malaysia propelled it to the top of the market, at least for a short while, surpassing Maxis Communications. However, recent numbers showed that they have lost their lead again. This is frequently happening to a company engaged in the internal integration of another large company, since the focus of the company is than directed inward, instead of outward.
In addition, there were changes in the top leadership with Datuk Abdul Wahid Omar taking over the helm of the company a couple of months back.
Now, apparently, they are ready to direct their intention back to the market. The basic outline is suppose to be a greater customer orientation, something really needed at Telekom, if one follows frequent complaints about the company in the local newspapers. But let's take a look at the strategic direction, and frankly, we were a bit surprised. Their five broad strategies encompassed:
1.) Grow cash flow and increase asset utilisation at the company's fixed-line business
2.) Capitalise on sustainable growth in the cellular sector
3.) Focus on data, broadband and value-added services;
4.) Develop a customer and service-driven culture in the organisation;
5.) Prudent international expansion
It might be a semantic word game, but to declare that a company will become more customer-centric and than put the strategy at number 4 out of 5 does not make sense. And remember, what is written in words, is triggered in the mind and might be executed in this order. So let's see, how this develops, and may be, may be, the customers become a different priority over time and increase their ranking. Or is it just us?
To recall, the company is the market leader in the fixed line business and in the Internet dial-up service plus in the nascent broadband sector. It struggled in the mobile sector and digested a couple of smaller companies over the last couple of years. Its last acquisition of Celcom Malaysia propelled it to the top of the market, at least for a short while, surpassing Maxis Communications. However, recent numbers showed that they have lost their lead again. This is frequently happening to a company engaged in the internal integration of another large company, since the focus of the company is than directed inward, instead of outward.
In addition, there were changes in the top leadership with Datuk Abdul Wahid Omar taking over the helm of the company a couple of months back.
Now, apparently, they are ready to direct their intention back to the market. The basic outline is suppose to be a greater customer orientation, something really needed at Telekom, if one follows frequent complaints about the company in the local newspapers. But let's take a look at the strategic direction, and frankly, we were a bit surprised. Their five broad strategies encompassed:
1.) Grow cash flow and increase asset utilisation at the company's fixed-line business
2.) Capitalise on sustainable growth in the cellular sector
3.) Focus on data, broadband and value-added services;
4.) Develop a customer and service-driven culture in the organisation;
5.) Prudent international expansion
It might be a semantic word game, but to declare that a company will become more customer-centric and than put the strategy at number 4 out of 5 does not make sense. And remember, what is written in words, is triggered in the mind and might be executed in this order. So let's see, how this develops, and may be, may be, the customers become a different priority over time and increase their ranking. Or is it just us?
posted by Andreas @ 9:32 am
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