Finance - Funding and Legislative Frameworks- myassignmenthelp

Question: Discuss about theFinance, Funding and Legislative Frameworks. Answer: SWOT Analysis The SWOT analysis of Axiata Group is shown below: Strengths Weaknesses Large size of the company along with strong employee base (axiata.com 2017) Presence of diversification in different segments Strong Research and Development department Strong goodwill and market reputation (khmertimeskh.com 2017) Low market share in recent years is a area of concern (thestar.com.my 2017) Low margin of profits in many segments in a weakness Opportunities Threats Increase in market penetration in internet usage (mcmc.gov.my 2017) Strong growth in population along with urbanization Strong growth in telecommunication service industry (fiercetelecom.com 2017) Advantage of IPO offering in other countries Rapid change in technology is a major threat. High competition in market (theborneopost.com 2017) Aggressive advertisement Presence of Smartphone war Market Growth Potential As per the above SWOT analysis, strong growth in telecommunication industry and increase in population in Malaysia have been creating growth opportunities for Axiata Group. Axiata Group is covering almost 95% of Malaysian population with their 2G and 3G network. For developing 3500 4G LTE sites, Axiata Group is continue investing in network coverage to boost their growth. In addition, Axiata Group has been investing in niche segments that have string growth potential. For this reason, Axiata Group has adopted the policy of investing in MVNOs in order to tap the niche telecommunication market of Malaysia. Thus, the company has made several partnerships with many other companies in the same industry (axiata.com 2017). Strategic Initiative Over the years, Axiata Group has been taking major strategic initiatives as per the changing business environments. In 2012, Axiata Group adopted the strategy of divesting 91% of their company shares in XL to offer investments to institutional investors. As per their strategic initiative, Axiata Group appointed CFO of Edotco group James Maclaurin. In 2014, Axiata Group completed the acquisition of Axis Telekom Indonesia. In 2015, Axiata Group completed the subscription of 80% stake of Asia Pacific Pte. Ltd. In 2016, Axiata Group completed the acquisition of Ncelll Pvt. Ltd. that is the best mobile operator of Nepal (axiata.com 2017). Identification of Nearest Competitors Two of the major and nearest competitors of Axiata are Maxis Berhard and Digi Telecommunication. Figure 1: Market Share (Source: bmiresearch.com 2017) From the above figure, it can be seen that based on earned revenue, Maxis and Digi provides a tough competition to Axiata. In addition, all of these three companies acquire most proportion of the telecommunication market share. Thus, these two are the nearest competitors of Axiata. Identification of KPIs As per the annual report, Axiata uses four major Key performances Indicators (KPI) to measure the companys financial performance. They are Revenue Growth that indicates the growth in the revenue of the company; EBITDA Growth that indicates the growth in earnings before interest, tax, depreciation and amortization; ROIC that is derived from EBIT less tax over average capital invested; and ROCE that is derived from EBIT less tax over average capital employed (axiata.com 2017). Competitors Analysis As per earlier discussion, two major competitors of Axiata are Maxis and Digi. Maxis is a major telecommunication company in Malaysia that was established in 1993. Maxis acquired almost 41% market share of Malaysian telecommunication industry. In 2014, the company registered 8.2 billion MYR as total revenue and 1.638 billion MYR as net income (maxis.com.my 2017). Digi is another major telecommunication company in Malaysia that established in 1995. Digi has acquired 30% of the market share of Malaysian telecommunication industry. In 2015, Digi registered 6.914 billion MYR as revenue and 1.723 billion MYR as net income (digi.com.my 2017). References axiata.com. (2017).Annual Report 2016. [online] Available at: https://www.axiata.com/media/upload/investors_relations/2016/pdf/Full_Draft_Axiata_Annual_Report_2016.pdf [Accessed 20 Oct. 2017]. Axiata.com. (2017).AXIATA ANNUAL REPORT 2016. [online] Available at: https://www.axiata.com/media/upload/investors_relations/axiata-2016/ar/business-review/celcom.php [Accessed 20 Oct. 2017]. Axiata.com. (2017).Axiata Group One of Asias largest telecommunications groups. [online] Available at: https://www.axiata.com/corporate/past-milestones [Accessed 20 Oct. 2017]. axiata.com. (2017).Group Corporate Structure. [online] Available at: https://www.axiata.com/media/upload/corporate/group_corporate_structure_59e8bb048fe1f.pdf [Accessed 22 Oct. 2017]. BorneoPost Online | Borneo, Malaysia, Sarawak Daily News. (2017).Msian telecommunications industry remains highly competitive. [online] Available at: https://www.theborneopost.com/2012/07/10/msian-telecommunications-industry-remains-highly-competitive/ [Accessed 22 Oct. 2017]. Digi.com.my. (2017).Our Company | Digi - Let's Inspire. [online] Available at: https://www.digi.com.my/aboutus/corporate_overview/information.html [Accessed 20 Oct. 2017]. Fiercetelecom.com. (2017).Malaysian telecom sector sees strong growth | FierceTelecom. [online] Available at: https://www.fiercetelecom.com/telecom/malaysian-telecom-sector-sees-strong-growth [Accessed 22 Oct. 2017]. Khmer Times. (2017).Smart Axiata joins NIPTICT to fund students - Khmer Times. [online] Available at: https://www.khmertimeskh.com/5084941/smart-axiata-joins-niptict-fund-students/ [Accessed 22 Oct. 2017]. Maxis. (2017).About Maxis | Maxis. [online] Available at: https://www.maxis.com.my/en/about-maxis.html [Accessed 20 Oct. 2017]. mcmc.gov.my. (2017).INTERNET USERS SURVEY 2016. [online] Available at: https://www.mcmc.gov.my/skmmgovmy/media/General/pdf/IUS2016.pdf [Accessed 22 Oct. 2017]. store.bmiresearch.com. (2017).Malaysia Telecommunications Report. [online] Available at: https://store.bmiresearch.com/malaysia-telecommunications-report.html [Accessed 20 Oct. 2017]. Thestar.com.my. (2017).Axiata Group's profit sharply lower at RM657mil in FY16 - Business News | The Star Online. [online] Available at: https://www.thestar.com.my/business/business-news/2017/02/23/axiata-group-profit-sharply-lower-at-rm657mil-in-fy16/ [Accessed 22 Oct. 2017].