DEVELOPING BUSINESS STRATEGY OF TELKOM INDONESIA TO IMPROVE REVENUE GROWTH IN ENTERPRISE SEGMENT

• Main Author: Reza Noorzaman, Hafiz
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47023
• Institution: Institut Teknologi Bandung

PT. Telekomunikasi Indonesia, Tbk (Telkom) is the largest telecommunications company in Indonesia which has four operation segments: mobile, enterprise, wholesale and international, and consumer. The declining business performance in the mobile segment which is the largest revenue contributor for the company as a group, has caused Telkom to find new revenue generator from other segments, one of which is the enterprise segment which is the second largest contributor. According to Frost & Sullivan (2018) the market size of ICT business for enterprise in Indonesia is also projected to grow. The enterprise segment will also open up opportunities for Telkom to realize a national digital ecosystem that supports the government's vision to become the largest digital economy in Southeast Asia. However, Telkom's business growth in the enterprise segment is still not optimal, especially in the bottom-line aspects. Low profitability is a major issue in this segment. Therefore, it is necessary to develop business strategy for Telkom to improve revenue growth in enterprise segment that is able optimize existing business opportunities and improve aspects of profitability at the same time. Before formulating strategy, it is necessary to analyze the external and internal environment to determine the strategic factors that affect Telkom's business in enterprise segment. The external environment analysis is conducted by using PESTEL analysis and Porter's Five Forces analysis to determine opportunities and threats regarding Telkom's business. Internal environmental analysis is conducted by using Resource-Based View analysis, VRIO analysis, and business model analysis to determine the strengths and weaknesses that affect Telkom's strategic conditions. Based on the external and internal environment analysis, alternative strategies are established by using SWOT analysis and TOWS matrix. After that, a corporate-level strategy, business-level strategy, and functional-level strategy were formulated for Telkom to improve revenue growth in the enterprise segment. Based on strategy formulation results, Telkom is recommended to implement growth directional strategy, portfolio strategy, and strengthen strategic parenting control for its corporate-level strategy. While for business-level strategy, Telkom is recommended to implement differentiation strategy with a functional-level strategy that supports differentiation as its main business strategy. Telkom is also advised to optimize strategy for its key account and implement an innovative business model through B2B2X business model. The implementation plan of strategy was compiled for five years while still evaluating key performance indicators to improve business growth for Telkom’s enterprise segment either in top-line or bottom-line.