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Telkom Case
Telkom Case
Telkom Case
Syndicate 2
Strategy-Formulation Conclusion
03 Analytical Framework 04 Our conclusion for which strategy should be
use
TOWS, Strategy and QSPM
Business Issue
01 Telkom business issue in triple play product
sales in Surabaya Area
BUSINESS ISSUE
• To market this new product across the country, Telkom need to know the potential of each city in Indonesia and surabaya is
one of the most highly prospective cities to sell Indihome product, but the reality is not always like we expected. Witel
Surabaya is the fourth worst on yearly sales achievement until November 2015.
• Witel Surabaya is the fourth worst on yearly sales achievement until November 2015 compared to all other witel in Regional
V. Even worse, Witel Surabaya achievement (37%) is below Regional V average achievement score (41%). Compared to
smaller remote city like Pasuruan, Madiun, and Jember, a bigger metropolitan city like Surabaya could achieve a better score.
Strengths Weakness
• S1. Have access to a lot of capital funds • S1. Have access to a lot of capital funds
• S2. Widest coverage area in Surabaya • S2. Widest coverage area in Surabaya
• S3. Have the most number of customer • S3. Have the most number of customer
relationship channel relationship channel
•
•
S4. UnbeaTable internet stability
S5. Pause and rewind features on TV cable S w •
•
S4. UnbeaTable internet stability
S5. Pause and rewind features on TV cable
• S6. The only true triple play with telephony • S6. The only true triple play with telephony
service and free calls included service and free calls included
.
Opportunities Threats
• O1. Existing fiber-optic backbone in • T1. Survey showed that consumer in Triple
Surabaya can help minimize capital cost
Play Service industry is price sensitive
needed
• O2. Online shop and Online game as the • T2. 4G mobile can beat Indihome internet
most frequent activity done through the
home internet O T •
speed easily
T3. Conventional satellite TV can beat the
• O3. Box office movies as the most watched number of TV channel with far more lower
shows on TV Cable price
• O4. Consumer needs of package for calling • T4. Telkom’s triple play service bundling
Cellular non Telkomsel number
strategy contradicts with anti monopoly law
ROOT CAUSE ANALYSIS
Strategy-Formulation Analytical
03 Framework
TOWS, Strategy and QSPM.
Stage 1 : Input Stage
SWOT Analysis
Strengths Weaknesses
S1. Have access to a lot of capital funds W1. Difficulties on premium positioning without any significant
S2. Widest coverage area in Surabaya differentiation
S3. Have the most number of customer relationship channel W2. Centralized marketing strategy
S4. Unbeatable internet stability W3. Highest price compared to competitor
S5. Pause and rewind features on TV cable W4. Higher package only provide higher internet speed and not
S6. The only true triple play with telephony service and free calls giving more TV channel
included
Opportunities Threats
O1. Existing fiber-optic backbone in Surabaya can help minimize T1. Survey showed that consumer in Triple Play Service industry
capital cost needed is price sensitive
O2. Online shop and Online game as the most frequent activity T2. 4G mobile can beat Indihome internet speed easily
done through the home internet
T3. Conventional satellite TV can beat the number of TV channel
O3. Box office movies as the most watched shows on TV Cable
O4. Consumer needs of package for calling Cellular non with far more lower price
Telkomsel number T4. Telkom’s triple play service bundling strategy contradicts
with anti monopoly law
Stage 2 : Matching Stage
TOWS Analysis
Internal Factors (IFAS) Strength (S) Weaknesses (W)
External Factors (EFAS)
Opportunities
Stage 3 : Decision Stage
Minimizing Capital Cost Needed To lower the price 0,25 1 0,25 1 0,25 1 0,25 4 1 1 0,25 1 0,25 QSPM
Desire for Online Game and Online Shop product 0,1 1 0,1 1 0,1 4 0,4 1 0,1 2 0,2 1 0,1
Desire for Box Movies Channel 0,15 4 0,6 1 0,15 1 0,15 1 0,15 1 0,15 1 0,15
New Package for calling non cellular telkomsel number 0,05 1 0,05 4 0,2 1 0,05 1 0,05 1 0,05 1 0,05
Threats
4G mobile beat indihome internet 0,05 1 0,05 1 0,05 1 0,05 2 0,1 3 0,15 3 0,15
Conventional Satelite TV with lower price 0,2 1 0,2 1 0,2 1 0,2 3 0,6 1 0,2 1 0,2
Strength
Have access to a lot of capital funds 0,2 4 0,8 4 0,8 4 0,8 3 0,6 3 0,6 3 0,6 1 = not attractive
Widest coverage area in Surabaya 0,1 2 0,2 4 0,4 1 0,1 1 0,1 1 0,1 1 0,1 2 = somewhat attractive
Have the most number of customer relationship chance 0,05 1 0,05 2 0,1 1 0,05 1 0,05 1 0,05 1 0,05
3 = reasonably attractive
Unbeatable internet stability 0,1 1 0,1 1 0,1 4 0,4 2 0,2 4 0,4 4 0,4
4 = highly attractive
Pause and rewind features on TV cable 0,05 4 0,2 1 0,05 1 0,05 1 0,05 1 0,05 1 0,05
The only true triple play with telephony service and free calls included 0,05 1 0,05 4 0,2 1 0,05 1 0,05 1 0,05 1 0,05
By attractive, we mean the extent that one strategy,
compared to others, enables the firm to either
Weakness
capitalize on the strength, improve on the weakness,
Difficulties on premium positioning without any significant differentiation 0,1 3 0,3 3 0,3 4 0,4 1 0,1 2 0,2 1 0,1
exploit the opportunity, or avoid the threat.
Centralized marketing strategy 0,05 - - - - - - Note: If you assign an AS score to one strategy, then
Highest price compared to competitor 0,15 1 0,15 1 0,15 1 0,15 3 0,45 1 0,15 2 0,3 assign AS score(s) to the other. In other words, if one
Higher package only provide higher internet speed and not giving more TV channel 0,15 3 0,45 1 0,15 1 0,15 1 0,15 1 0,15 1 0,15
strategy receives a dash, then all others must receive
a dash in a given row.
SUM 1 3,85 3,5 3,55 4,2 3,05 3
Conclusion
Based on QSPM matrix, the focus strategy that should be
applied is Maximalize fiber optic bacbone to push the price low
04 since lowered the price of the product could help increasing the
product sales.
THANK YOU