MARKET PENETRATION EVALUATION OF INFRASTRUCTURE AS A SERVICE (IAAS) TO FORMULATE MARKETING STRATEGY: CASE STUDY LUMOS TECH INDONESIA

• Main Author: Junjunan Purbajati, Rizky
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85970
• Institution: Institut Teknologi Bandung

The International Data Corporation (IDC) has predicted a growth rate of approximately 20-30% for cloud computing in Indonesia. This presents a great opportunity for incumbent players to expand their market share, particularly in the field of Infrastructure as a Service (IaaS), where represent the largest portion of cloud computing market. As a global technology company who provides IT Infrastructure including IaaS offer, ideally Lumos Tech Indonesia should be able to grow the business. However, the company is having a slow penetration rate which approximate to 0.2% for the IaaS offer. The objective of this study is to enhance the company’s market penetration through findings the important factors both internal and external which could help the company to improve existing market penetration by improving the business performance. This study adopts a mixed methodology where quantitative method is used to assess the most suitable market for IaaS offer. Meanwhile the qualitative method focusses on assessing the current condition to define the internal factors that hamper market penetration for IaaS offer. The external data collection of this study is coming from both primary and secondary sources. The primary sources is performed through questionnaire, which circulated to IT related department and there are three market category that is being assessed covering Commercial, Institution and Government. In addition, the secondary data collection utilized the existing sources such as report of previous study, report from consulting firms and journals. The excepted output from the data collection is to analyze the likelihood of those market, which one has the highest likelihood rate to adopt the IaaS offer of Lumos Tech Indonesia. Moreover, it is used to assess external environment of the company through PESTEL and Porter’s 5 Forces analysis. The result of the external analysis indicates that IaaS business in Indonesia is still have high propensity to grow and Institutional market has the highest likelihood rate among others. ii On another hand, the internal data collection utilize qualitative portion on this study is performed through semi-structure in-depth interview. The subject of the interviewee is the owner of the problem that employed under Lumos Tech Services entity. Internally, there are four primary factors that hinder the acceleration of IaaS market penetration, it includes complex business process, organizational challenges, ineffective marketing strategy and lack of consumers relationship management. Furthermore, a SWOT analysis is conducted to define the company’s strength, weakness, opportunity and threat. There are 16 strategies that are derived from the modified B2B marketing mix. A group discussion is conducted to determine the feasibility rate of each strategy which classified into three categories; strong, moderate and weak. Those falls under strong categorizes are selected to be the proposed marketing strategy for Lumos Tech Services in order to accelerate market penetration for the IaaS offer. In total there are 8 strategies that need to be implemented to accelerate the market penetration rate and develop the market covering; (1) Leverage global brand, data security and data sovereignty as the competitive advantages, (2) Re-launch predefined package, (3) Selecting exclusive distributor for IaaS offer, (4) Improvement on route to market process, (5) Implement value-based pricing, (6) Increase pricing competitiveness, (7) Refocusing social relationship management and (8) Create a customer retention program