Mobile One Essay Example

for 3G services. They were also pioneers in mobile phone cash-card, top-up, and prepaid services, giving them an advantage early on. Additionally, M1 was the first company in Singapore to offer 24-hour customer service, which was highly successful and contributed to their expansion. This commitment set them apart from other companies that did not provide round-the-clock support, making M1 more appealing to customers. As a result of these accomplishments, M1 received various accolades such as "The Best Mobile Network Provider in Singapore," "The Best New Operator in Asia-Pacific," and "10 Retail Gold Courtesy Awards." These awards significantly shaped how customers perceived M1's excellence.

M1 is known for its strong leadership and organizational behavior. The CEO, Mr. Montefiore, demonstrates democratic authority within the company. This means he involves subordinates in decision-making, delegates authority, and encourages participation in determining work methods. Additionally, he utilizes feedback as an opportunity for coaching as described by P. Robbins et al (p. 596). Mr. Montefiore's experience is evident as he successfully established M1 in time for the launch of 3G technology. Through his vision and credibility, he has kept the company at the forefront of new technological development. In fact, he transformed M1 from a young company to a listed firm within just five years. Recognizing his achievements, Mr. Montefiore was awarded the "Outstanding CEO of the Year" by The Business Times and DHL Worldwide Express.

M1 introduced a counseling service through SMS called "Ask Carey" and a unique MMS that allows users to send multimedia messages including photos, animations, voices, and music between mobile phones. This service provides customers with entertainment options. M1 has received multiple awards for its creative advertisements and

marketing campaigns, including "The Most Effective Marketing Campaign" award and recognition for innovation in the telecommunications industry. M1 was chosen as the best because its "Everything under the Sun" campaign was creative, clear, informative, targeted appropriately, and produced measurable results.

Weaknesses

Weaknesses are activities that the organization does not excel in or resources that it lacks. It is essential for managers to acknowledge that every organization, regardless of its size or success, has limitations imposed by available resources and capabilities. In December 2001, M1 experienced a leak of customers' personal details caused by two employees breaching the company's policy. This breach had a significant negative impact on M1's reputation. Without proper supervision and penalties for such actions, there is a risk of similar behavior recurring in the future.

M1 made the decision to terminate its paging services due to a decrease in profit and market share. This decision reflects M1's focus on profitability, but it also neglects the needs of its customers, which contradicts their image as a customer-focused organization.

Opportunities

Opportunities refer to potentially favorable events in the external environment of a firm. Global M1 is well-known in Singapore and has gained popularity after being listed on the Singapore Exchange. The company made history with the third largest IPO ever in Singapore on December 4, 2002. This has enhanced the company's reputation and opened up possibilities for collaborations with other companies in Singapore for various purposes.

Furthermore, being listed on the Singapore Exchange also enhances the attention received from foreign investors. This is due to the increased investor confidence in the company. Additionally, the youth segment of the market in Singapore is experiencing significant growth. With their higher

spending power and tech-savviness, Singaporean youth present a lucrative market for products and services. They are particularly enthusiastic about technology-related products and are early adopters of smartphones. According to a survey conducted by AC Neilson, individuals aged 15-29 make up 32 percent of the total market in Singapore.

Research indicates that the youth demographic in Singapore has a strong interest in current lifestyle trends. To tap into this market, StarHub and influential youth media outlet MTV Asia have formed a partnership. The youth market, particularly in the technology sector, is predicted to enthusiastically embrace 3G services. As previously mentioned, young individuals are quick to adopt new technologies. However, it is worth noting that WAP (wireless application protocol) was introduced prior to WiFi and 3G but had drawbacks such as slow speed and restricted access to online content.

M1 has recently introduced a new feature that allows customers to use their mobile phones for various daily transactions, such as paying for parking fees, movie tickets, groceries, phone bills, and more. This innovation is especially appealing to businessmen and career women who frequently travel for business purposes.

Threats

The IDA regulates the telecommunication industry and has imposed restrictions on M1. These regulations prohibit M1 from making any claims or assumptions about the price or quality of its telecommunication services in advertisements. The aim of these regulations is to prevent customers from being misled or confused.

One of the regulations set by IDA is that all telecommunication companies must allow customers to keep their old numbers for free when they switch providers. This rule has limited M1's ability to charge customers for using their services. As a result, M1 may find it more

difficult to generate revenue and would need to find other ways to attract customers. M1's main competitors are SingTel and StarHub. SingTel used to be a public company until 1992, while StarHub was launched after M1 was established. Despite this, StarHub managed to gain a significant market share by not charging for incoming calls and implementing per-second billing, strategies that were not adopted by M1 and SingTel, resulting in a loss of market share for both companies.

StarHub has recently reduced their prices for international calls by 69%, which poses a significant threat to M1. M1 is unable to accurately predict or monitor StarHub's competition. While internet phones do not directly compete with M1, they could become a threat in the future, particularly in the realm of international calls. Today's customers are increasingly demanding services like video conferencing. Additionally, other internet services such as chat and free VOIP (voice over internet protocol) platforms like Skype can indirectly pose a threat to M1.

Porter’s Five Forces Model

Threat of New Entrants

The barriers to entry in the industry are characterized by high startup costs and other obstacles that deter new competitors from easily entering the market. These barriers benefit established companies like M1 as they protect their revenues and profits from being eroded by new entrants.

According to Dictionary.com (n.d.), entering the telecommunications industry in Singapore requires overcoming barriers such as capital, technology, and skilled labor. Obtaining sufficient capital is a major challenge for new firms in an established market, often involving a significant investment. Moreover, establishing a presence in the telecommunications industry usually takes considerable time.

M1 entered the monopolized market of SingTel, obtaining licenses to operate mobile phone

services and radio paging service within a year. It took them twenty four months to lay the groundwork and launch their mobile phone services on April 1, 1997. The telecommunications industry is constantly updated with modern technology, requiring the acquisition of the latest technologies such as cell phone towers, satellites, system software, and broadcasting capabilities. However, acquiring new technology is expensive. M1 recognized the significance of past experience in the telecommunication industry and hired individuals with relevant expertise to avoid posing a threat to their operations.

The company has hired professionals in different areas, such as marketing, sales, management, customer service, product/service development, financial planning, and mobile operating systems. These experts play a crucial role in ensuring the company's success and competitiveness in the telecommunications industry. Factors like switching cost and buyer loyalty affect the potential threat of substitute products within this industry. According to M1's case study, the internet can be considered a substitute option due to the emergence of services like VOIP and alternative mobile phones. As internet services gain popularity, more people are opting for it as their main means of communication.

Using the internet for different purposes, such as entertainment and communication, enables customers to save money or not spend anything at all. Online programs like Skype make it possible to transmit clear voice messages worldwide, even with slow connections. This convenience poses a significant threat to mobile phone companies because individuals with dial-up internet can utilize online programs instead of traditional phone lines to make calls. Consequently, 3G services on mobile devices are endangered since customers can make free video calls on the internet rather than paying for them. According to Mosley

et al., the amount of pressure customers can exert on margins and volumes determines their bargaining power.

996, p. 89). The rise of the mobile phone service industry has made customers more demanding, particularly in Singapore where the market is saturated and customers are less focused on price. As a result, non-price factors have given customers a strong bargaining power, as they prioritize receiving the highest quality service regardless of cost.

Intense competition among companies has resulted in reduced prices and improved quality. M1, a pioneer in Singapore's introduction of 3G technology and round-the-clock customer service, serves as an example of this trend. This demonstrates M1's reliance on customers for growth, highlighting their significant bargaining power. In the telecommunications sector, satisfying customers' basic requirements and promptly addressing their concerns are crucial for an organization's survival.

In the telecommunication industry, customer satisfaction is of utmost importance. The bargaining power of suppliers pertains to their ability to potentially raise prices or decrease the quality of goods and services (Bartol et al., 2005, p.).

202) The signal tower is crucial for M1 as a provider of mobile phone services. Reliable steel manufacturers are needed to produce signal towers. M1 also relies on capital and investment, which requires the cooperation of shareholders as a listed company. To stay ahead of competitors, M1 requires large amounts of capital and heavy investments. To attract shareholders, M1 must prevent fraud incidents caused by treacherous employees from happening in the future. Such incidents would severely impact current shareholders' confidence and trust in the company's management, as well as its reputation. Rivalry is an essential aspect of business for growth and maturity.

Rivalry among current competitors can result in

various tactics, including aggressive pricing, promotional efforts, and competition for customers, channels, or improved service levels (T. Have et al., 2003, p.).

46) M1 faces tough competition from its two main rivals, SingTel and StarHub, in the mature and saturated Singaporean market. To stay competitive, M1 employs various non-price strategies such as extensive advertising campaigns, introduction of new call plans, and improving customer services quality. These efforts aim to create brand loyalty by meeting customers' actual demands. However, implementing these non-price tactics involves substantial costs.

Conclusion: Mobile One has its own strengths and weaknesses, as well as threats and opportunities. Some of its strengths include being the pioneer of 24-hour customer service, having received numerous awards since its establishment, and being supported by competent management. These strengths position Mobile One to expand further and increase its market share. However, Mobile One also has weaknesses, such as the termination of its paging services that previously held a 10% market share. This decision was made because of low turnover and a fraud incident. Mobile One also faces external threats and opportunities that are influenced by Porter's Five Force model. These include the threat of new entrants into the market, the threat of substitutes, the bargaining power of suppliers and customers, and rivalry.

A competitive strategy is recommended after conducting research using SWOT analysis and Porter's five force model. Our findings indicate that Mobile One is a rapidly growing company. With reference to Porter's five forces model, we have identified three competitive strategies: cost leadership strategy, differentiation strategy, and focus strategy (Yosshino ed tl, pg 169). The differentiation strategy is the most suitable choice, either by enhancing an organization's differentiation advantages

in relation to suppliers, customers, and competitors, or by reducing others' differentiation advantages in comparison to the organization. In other words, this strategy is selected because M1 aims to provide unique products that are highly valued by customers.

M1 has established a strong brand through innovative services, including being the first to offer 24-hour customer service in Singapore. However, the analysis shows a clear issue. The Singaporean telecommunication industry is already saturated, and M1 is at a disadvantage as a pure mobile operator. This problem is exacerbated by competition from SingTel and StarHub, who offer additional telecommunication services like fixed lines and internet. Additionally, M1 achieved success in 1998 with the introduction of an SMS-based banking service and in 2001 with the launch of 3G service. These technological advancements were made to stay competitive with rivals.

Considering that customers prioritize service variety and quality, it is important for M1 to maintain their innovation in developing new products to stay ahead of their competitors. Simultaneously, they should focus on delivering high-quality customer service rather than relying on price reductions, as the latter has been proven ineffective.