Hrm of H&m

Porter

2.2.1 Threat of New Entrants

                In Porter’s Five Forces, threat of new entrants refers to the threat new competitors pose to existing competitors in an industry. A profitable industry will attract more competitors looking to achieve profits. When too many competitors produce the same product or enter the market and it will barriers to enter the market or to compete with others company. If there were has many same product in the market they will might faces difficulties to compete with others competitors. For example the other competitors that compete with Maxis is Celcom, Digi, UMobile, Tune, Hero and so on. Though, telecommunications is not an easy entry industry in spite of the gossipy of easy award of 4G spectrum or range to new entrants. There are a few barriers to perceive. One of the barriers is License. Every potential entrant should get a license through MCMC which is known as Malaysian Communications and Multimedia Commission. Nonetheless, it is difficult and costly to get a favor or approve license because of MCMC’s strict requirements and procedures. However, once acquire, a license may apply for the renewal of its individual license preceding expiry.

            Besides, High Capital Investment is also one of the barriers to recognise. Other than costly license, telecommunication likewise required high fixed costs and spend moderately high on network equipment and to obtain or maintain development. It may achieve a couple of billion Ringgit Malaysia.

             Moreover, another barrier is Advance Technology. The advanced technology required in telecommunications industry not only incurred high capacity investment but also need professional knowledge and skills (human resources) to make sure success in the industry. It is not easy to copy or imitate.

          Sole Right for Certain Projects is also one of the barriers. The government had granted sole right for specific projects to existing telecommunication for instance Telekom has sole ideal to both association of submarine cable for the broadband service and also HSBB). Yet, aside from Telekom Malaysia, other Network Facilities Provider (NFP) licensees such as,Maxis Celcom, DiGi and UMobile dotcom can manufacture their own network and cable landing stations should they choose to invest in the facility. Thus, broadband license are likewise granted to some private telecommunications administrators.

             Maxis's reputation has been built around their superior customer service and quality network. Due to high expectations and standards that come with the Maxis brand it is not without reason that users are more requesting of Maxis. Therefore, Maxis always think that their business on being the customer's first decision.

              Capital requirement usually build up a firm which is the high capability to compete in the business. However, telecommunication is a high competitive industry in order to increase large market share. Therefore, new entrants have to guarantee that they have ample financial resource to sustain or support in this industry.