STRENGTHENING BUSINESS STRATEGY OF TELKOM ENTERPRISE TO INCREASE MARKET SHARE AND PROFITABILITY OF TELKOM GROUP IN ENTERPRISE BUSINESS

• Main Author: Muhammad Husin, Fahmi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72027
• Institution: Institut Teknologi Bandung

PT Telkom Indonesia, Tbk (Telkom) is a state-owned company (BUMN) and the largest telecommunications company in Indonesia which is engaged in information and communication technology services (ICT). It is also a telecommunications network in Indonesia. The Government of the Republic of Indonesia owns 52.09% of Telkom, with the public owning the remaining 47.91%. Telkom stocks are traded under the symbol "TLKM" on the Indonesia Stock Exchange (IDX) and under the symbol "TLK" on the New York Stock Exchange (NYSE). Telkom is transforming into a digital telecommunications company by implementing a customer-focused business and operational strategy. The Telkom Group organization will become leaner and more agile in adapting to the changing telecommunications industry as a result of this transformation. Telkom operates in four business segments: mobile, wholesale and international, enterprise and business, and consumer. Telkomsel, as the subsidiary mobile segment, faces stiff competition in the mobile segment. As a result, business performance in the mobile segment, which is the largest revenue contributor for the company as a whole, suffers. The market size of Indonesian enterprise ICT business is expected to grow, according to Frost & Sullivan (2018) and IDC (2019). As a result, Telkom should concentrate on this enterprise business segment as a new revenue stream, and become Telkom's second largest contributor. The Enterprise segment also provides opportunities to realize a national digital ecosystem, which supports the government's vision of Telecom becoming Southeast Asia's largest digital economy. However, Telkom's enterprise business growth has been hampered, particularly in terms of product complexity (Telkom is not yet ready for digital platforms and digital services), account management skills, and product or project profitability. These findings are the most serious problem in the Enterprise segment. As a result, Telkom must develop comprehensive business strategies to increase revenue growth in the Enterprise segment. Optimize the existing business while focusing on new digital products (Digital Platform and Digital Services), imprServicesccount managers' capabilities, and increase profitability. Before developing a strategy, it is necessary to assess the internal and external environment to into strategic factors influencing Telkom's business in the enterprise segment. To determine the strengths and weaknesses that affect Telkom's strategic conditions, the internal environmental analysis employs VRIO analysis, Resource-Based View analysis, and business model analysis. To determine opportunities and threats to Telkom's business, the external environment analysis employs PESTEL analysis and Porter's Five Forces analysis. Using SWOT analysis and the TOWS matrix, alternative strategies are developed based on external and internal environment analysis. Following that, Telkom developed a corporate-level strategy, a business-level strategy, and a functional- level strategy to improve revenue growth in the enterprise segment. Based on the results of strategy formulation, Telkom is advised to implement a growth directional strategy, and a portfolio strategy, and to strengthen strategic parenting control for its corporate-level strategy. Telkom is advised to implement a differentiation strategy with a functional-level strategy that supports differentiation as its main business strategy for business-level strategy. Telkom is also advised to optimize its key account strategy and implement an innovative business model via the B2B2X business model. The strategy implementation plan was developed over five years while still evaluating key performance indicators to improve business growth for Telkom's enterprise segment, either top-line or bottom-line.