PROPOSED BUSINESS STRATEGY IN HOME INTERNET BROADBAND SEGMENT TO INCREASE REVENUE (CASE STUDY: PT SMARTFREN)

• Main Author: Ibrahim Rasyid, Faisal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65369
• Institution: Institut Teknologi Bandung

This research is about Smartfren’s market development strategy to gain sustainable competitive advantage in the long run that will ensure subscribers growth and revenue growth. To strengthen business portfolio, Smartfren could enter new markets or new customers with existing products offering (with some modification). Telecommunication industry competition is getting intense as ever. Smartfren subscribers have increased but revenue trend per month is stagnant during 2021. The biggest challenge Smartfren currently experiencing is internet data price war among other operators. In fact, this is the main force behind Smartfren's stagnant revenue. Every telecommunication company currently is also competing in low value internet service packages. With this situation competition is becoming solely based on price. One of the alternative solutions for Smartfren to grow both revenue and subscribers is to deploy market development strategy, enter a new market with existing product offering, in this case the home internet segment, which targets household internet users. Looking at the trend and fact, this segment is a big opportunity for Smartfren. In 2021, there are approximately 75 million households in Indonesia, and the penetration of fixed broadband like indihome and/or First Media is only 4%. Smartfren doesn't have yet capability to enter home internet segment with fixed broadband but Smartfren can offer alternative solution with wireless device that has internet data. This research will focus on Smartfren market development strategy by entering a new market with modification of existing products to gain competitive advantage and to increase subscribers and revenue. The objective of the research is to determine the business strategy which is aligning external environment with internal capabilities or resources. The research will start with external analysis to study opportunities in the home internet market and continue with internal analysis to determine Smartfren core competencies. Business strategy formulation is determined based on internal and external analysis. Based on the research analysis, Smartfren competitive advantage over direct competitors are the unlimited internet service portfolio which has higher perceived value. The mode of expansion is partnership with device or modem vendors that has distribution capabilities in device/modem channels.