Monday, January 2, 2012

Celcom Postpaid Plan

Celcom is the oldest and 2nd largest mobile tele-communication company in Malaysia. Formerly, Celcom is the largest mobile users but they lost to Maxis after Celcom merger with TMTouch and Maxis merger with Timcel. However they still maintain as the widest network coverage in Malaysia!

Celcom postpaid market share has been bitten by smaller competitors such as Digi and Umobile due to lack of good postpaid products. Celcom should have supplementary call plan with the same rates enjoy by the principal. Celcom’s 1+5 postpaid plan are the most expensive despite the lowest commitment fee. The rates also differ from the principal who enjoys lower rates for SMS and calls. Maybe Celcom should reduce the rates in order to attract customers even though Malaysia is highly penetrated mobile users.

Besides that, Celcom mobile broadband speed is slightly slower than Maxis however Celcom able to provide quality or stable networks to the users. Maybe Celcom can focus how to increase the mobile broadband speed. Moreover, internet connection for prepaid users also slightly expensive ranges from daily to weekly. Maybe Celcom should consider revising the rates in line with Maxis and Digi.

Celcom should work with government agencies to use Celcom as official networks and make compulsory to government employees to use Celcom since Celcom is owned by Khazanah (investment arm of government of Malaysia).

Sunday, December 25, 2011

Malaysia Airlines Turnaround Plan 2011/2012

Malaysia Airlines (MAS) cut as many as 12% of their routes in order to cut operation costs. I think MAS can maintain their Kuala Lumpur - Rome route with twice weekly instead trice weekly. Singapore Airlines (SIA) operate Singapore - Rome twice weekly with 777-300 but with a better products offering compared with MAS.

Furthermore, MAS should think to replace the existing aircraft which have high in maintenance costs and high fuel consumption. Malaysia Airlines should buy at least 3 Boeing 747-8 which will be used to Amsterdam, Sydney, Tokyo and New Delhi routes together with 6 A380s that will be operated to London, Amsterdam and Sydney routes. As far as I can see Kuala Lumpur to Los Angeles via Taipei has shown good load factor and almost 100% load factor. Maybe MAS should think to increase to 4 times weekly instead of 3 times weekly.

The existing aircraft should refurbish in line with other airlines starting with MAS' Boeing 777-200 as a kick start for turnaround plan. Based on survey I conducted, most of the people fly with other airlines because of in-flight services or products.

My suggestion:
4x A380 use in London route
1x A380 and 1x 747-8 use in Amsterdam route
1x A380 and 1x 747-8 use in Sydney route
1x 747-8 use in Tokyo and Delhi

Tuesday, December 20, 2011

Proton New Engine (Campro 1.6 CFE)

Proton need to produce new replacement model frequently in order to attract the customers. The current models are really outdated. For example, Proton should already replace Proton Perdana V6. There is no new model to replace the Perdana V6. Furthermore, Perdana V6 no longer in production.

However they manage to produce all new engine called Campro 1.6 Charge Fuel Efficiency (CFE) which is a good steps for Proton. The performance specs for the CFE mill are 140 PS (or 138 hp) at 5,000 rpm and 205 Nm at 2,000 to 4,000 rpm The new engine able to compete against the CPS as well as two competitors, the Nissan Grand Livina 1.8 and Toyota Innova 2.0L. The new engine will be equipped in new Proton Exora Bold model. This new Proton Exora Bold able to kicks out Nissan Grand Livina 1.8L and Toyota Innova 2.0L.

Click here for more informations about the new engine.

New Proton Exora Bold model

Friday, December 16, 2011

Malaysia Airlines Axes 8 routes

Malaysia Airlines has embarked on a significant route rationalisation as part of its restructuring plan to stem its losses anticipated this year and in 2012.

The route rationalisation involves the withdrawal from the following loss-making routes:
Effective 6 January 2012: Daily flights Kuala Lumpur – Surabaya B737.
Effective 10 January 2012: Thrice-weekly Kuala Lumpur – Dubai A330.
Effective 12 January 2012: Twice-weekly Kuala Lumpur – Karachi – Dubai A330.
Effective 13 January 2012: Twice-weekly Kuala Lumpur – Dubai – Damman A330.
Effective 30 January 2012: Daily Langkawi – Penang – Singapore B737.
Effective 31 January 2012: Thrice-weekly Kuala Lumpur – Johannesburg B777.
Effective 1 February 2012: Twice-weekly Kuala Lumpur – Cape Town – Buenos Aires B747.
Effective 2 February 2012: Thrice-weekly Kuala Lumpur – Rome B777.

“The withdrawal was based on our own independent internal profitability and yield analysis," said Malaysia Airlines’ Group CEO Ahmad Jauhari Yahya. However Malaysia Airlines will start operating back to these routes when the business is stable.

For my point of view, Malaysian able to attract customers if they refurbish their fleets for a better looks and new products offering. Currently Malaysia Airlines products quality are shrinking and left behind by other mainstream airlines such as Singapore Airlines, Emirates and Qatar Airways.

Saturday, November 26, 2011

MAS will stop flying to Argentina & South Africa

In order to cut costs, Malaysia national carrier, Malaysia Airlines (MAS) will stop flying to Johannersburg and Cape Town in South Africa and Buenos Aires in Argentina starting early next year. I heard from one of the employees of MAS told me that the load factor is good but the yield is bad due to lack of premium customers, Business Class and First Class. The reasons they are not flying with MAS because the products are outdated. Other carriers such as Emirates, Qatar Airways and Singapore Airlines which flies to that particular routes and offers full flat bed with the seats arrangement of 1-2-1 on business class makes the passenger feel so comfortable to fly them. In closer, MAS business class is angle lie flat bed with the seats arrangement of 2-3-2 which is pack and outdated. Besides that, MAS also faced another problem with some restrictions on their flights which they are not allow to pick passengers from Cape Town to Buenos Aires. Maybe MAS should transit with other cities instead Cape Town which don't have any restrictions on flights or working with government of Malaysia to sign bilateral agreement with government of South Africa for open skies.

Besides that, MAS will reduce flights to Dubai in stages until they operate twice weekly due to load factor problem. They will also stop flying to Damman which transit in Dubai. In closer, Emirates, the national carrier of UAE offers 17 flights weekly from Dubai to Kuala Lumpur and even operate the world's biggest aircraft to Kuala Lumpur on certain days. The problem which I can identify is products offering resulting poor load factor. The products offering cover in-flight entertainment and premium products such as business class and first class. The current aircraft only offer small PTV and not fully flat bed on business class.

Saturday, November 12, 2011

You Should & Shouldn't...

When you have a bigger competitor, you should:-

1) Your products should not be at the par with your main competitors but it should be better than your competitors in terms of pricing and quality. For example, Telco M offer RM0.10 per SMS and you shouldn't offer at RM0.10 per SMS because it does not attract the customers. When you offer RM0.08 per SMS and both offers the same quality of network coverage, people will use your service despite losing RM0.02 per SMS but at the end your loss of RM0.02 can attract more customers. Subsequently your loss can be covered with the increasing number of customers. Another example, when Airlines M offers same products as you offered, you shouldn't be at the par with your competitor especially your competitor has a good reputation. What makes customers to fly with you if both airlines have the same products. So market diversification equals into 50%-50% or even lower. You gain less customers as compared with your competitor.But when you have better products than your competitors, the market diversification is 50% and above. You gain more market shares! So better invest more and you get more customers in return.

2) Marketing: Advertise your products in tv commercials and mainstream magazines and newspapers that suits with target group of people.

3) Social media: Use Facebook and twitter to market your products, promotions etc or even as a medium tools to get feedback from your customers to improve your products in the future.

Sunday, November 6, 2011

MAS Could Take Opportunity on Qantas's Fleets Grounding

October 29, 2011 - Malaysia Airlines System (MAS) could take this opportunity to market their brands, products and services when Qantas (the national carrier of Australia) grounded its entire fleets. There is a several way how to improve MAS presence in Australia. Which are:-

1) Market their brands and products since there is a huge number of passengers travelling to Europe and Asian countries from Australia.
2) MAS could act as a feeder for Qantas by offering flights to Qantas' stranded passengers to Europe and Asian countries from Australia or vice versa and in return Qantas will pay MAS for utilizing MAS fleets.

MAS has good services, one of the World's Best Cabin Crew and a 5-Stars airlines. MAS-Qantas has a good relationship and recently MAS join One World is sponsored by Qantas but MAS didnt take this opportunity to market them. MAS should be more sensitive next time.