FORMULATING BUSINESS STRATEGY AND INNOVATIVE BUSINESS MODEL IN DELIVERING WIFI.ID SERVICE OF PT TELKOM

• Main Author: Yunaswati, Beta
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35904
• Institution: Institut Teknologi Bandung

Telkom Indonesia as one of the biggest telecommunication company in Indonesia has several main products in broadband services. One of their main products is WIFI.ID (Indonesia Wi-Fi). It is a public internet services based on wireless technology that allow customers to enjoy high speed internet connections in any public spot. WIFI.ID was developed in 2014 as the substitutes of Telkom Flexi product that had been declining revenue at that time. WIFI.ID expected to be the second wave of the revenue generator in Telkom. However, in this tight competition of digital era the revenue growth of WIFI.ID is not as expected, many WIFI.ID locations are not generating revenue as the utilization of the access point is very low. This research aims to find the alternative solution for WIFI.ID increase the revenue growth in order to be the second wave of revenue generator Telkom Indonesia. The research is focused by observing the business environment, formulating business strategy and proposing the implementation through business model in delivering Wi-Fi service for WIFI.ID. In this research, author used conceptual framework consist of external environment analysis (PEST, Porter’s 5 Forces, Competitor Analysis and Benchmarking), internal environment analysis (Resource Based Analysis, Value Chain Analysis, Business Model Analysis, STP and Marketing Mix), Customer Profile Analysis, Business Strategy Formulation (SPACE Matrix, TOWS Matrix) and Business Model Improvement (Nine Block Business Canvas). After the analysis has been done, author conclude that WIFI.ID need an aggressive strategy based on SPACE Matrix result. The aggressive strategy is in order to increase the market by improving the current business model. Aligned with that, author proposed WIFI.ID need to improve the existing business model by leveraging its value propositions to be delivered to the customers in order to develop the point of different among competitors. To determine what values to be delivered to the customers, this research do the customer profile analysis to understand what the problems they faced, the jobs they need to finished and the gains they expect from Wi-Fi service. The author proposed WIFI.ID should offer Freemium business model for the customers. For the basic service, customers could get the Wi-Fi service freely with some limitations. For the premium service, customer will get Wi-Fi service bundled with popular digital contents by paying subscription fee. WIFI.ID should strengthen the B2B2C scheme and focused to deliver the service to the business customers by offering value added such as customer profiling, customized advertisement to their customers and others benefits to improve customers experience. Furthermore, WIFI.ID should leverage the market to mobile cellular provider with revenue sharing scheme to provide seamless connectivity of WIFI.ID through mobile cellular authentication.