Abstract
Innovation has become an important source of growth and survival for the telecom industry, especially with the highly competitive, dynamic business environment of this sector. The telecom market attributes of liberalization, privatization and globalization result in fierce competition, which aggravates telecom firms’ challenges to expand their market share, and hence, increase customer base, sales volume, and ultimately profit. A new strategy to succeed is innovation differentiation, which leads to breaking out the competition and creating uncongested market space. The aim of this paper is to highlight the logic of value innovation in the wireless telecom sector. A qualitative research approach was used to analyze the actions related to value innovation in the mobile service sector in Malaysia. In particular, this study focuses on the motivation, and hence the changed strategies, of telecom service providers to embrace value competition rather than traditional tariff competition in order to enhance customer satisfaction and encourage customer loyalty, which will ultimately result in higher profitability and growth. The services and loyalty packages provided by the telecom firms were reviewed through employing analytical case study. Also, this paper highlights the drawbacks and limitations of the services that did not live up to the expectations of customers and failed to earn their loyalty. Moreover, this study gives suggestions to service providers regarding ways to achieve long-run profitable growth.
Keywords
innovation, value innovation, telecom, Malaysian telecommunications industry
Chinese Abstract
无线电信服务业中的价值创新活动：基于马来西亚市场的研究
创新已成为电信业生存与发展的重要推动力，在竞争激烈、充满变幻的商业环境中更是如此。电信市场的自由化、私有化和全球化导致了竞争白热化，对电信公司扩大市场份额，从而扩展客户群，增加销售额以达致最终利润增长提出了更严峻的挑战。创新差异是通向成功的新策略，有助于企业摆脱竞争的困境，创造相对宽松的市场空间。本文旨在强调价值创新在无线电信业中的商业逻辑。本文定性研究了马来西亚移动服务业中价值创新的相关行为。研究重点关注电信服务商接受价值竞争而非传统关税竞争的动机和因此引起的策略变化，以此提高顾客满意度和忠诚度，最终实现更高的利润和成长。通过分析案例研究，本文检阅了电信公司提供的服务及忠诚计划，同时强调了服务中的不足与缺陷，它们致使公司无法满足顾客的期望，亦无法赢得他们的忠诚度。此外，本文就如何取得长期利润增长对服务商提出了建议。
创新，价值创新，通讯，马来西亚通讯业
DOI
10.5038/2640-6489.5.1.1125
Recommended Citation
Hajar, M., Ibrahim, D., Darun, M., & Al-Sharafi, M. (2020). Value innovation activities in the wireless telecommunications service sector: A case study of the Malaysian market. Journal of Global Business Insights, 5(1), 57-72. https://www.doi.org/10.5038/2640-6489.5.1.1125
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