BAB I BACKGROUND

In

the

midst

of a

very tight competition,

especially mobile

telecommunications business continues to growth rapidly. As an illustration, during the years 2008-2009, the mobile users in Indonesia, from 7 telecom operators

both GSM and CDMA, the subscribers is increased from 151.6 million in 2008 to 211.9 arrivals million subscribers in 2010, not including customers of operator new like Natrindo Cellular Phone (Axis), SmartTelecom (SmartFren),

Hutchison Telecom (Three) and Sampoerna Telekomuniksasi (Ceria). With this level of penetration, mobile telecommunications operator in Indonesia is estimated to be entering an era of zero sum game with the saturation and penetration is quite high. capacity, Therefore, in coverage and this era, support mobile telecom operators to compete in as 2G, 3G,

systems, infrastructure such

billing, customer relationship management solutions, other solutions that have the ability high speed acces. The penetration rate is high enough, then in the last three years, to reach the number of subscribers, all telecom operators heavily promoting tariff reductions. Trend of tariff reduction undertaken since 2008, it can not be separated from technological developments, which encourage lower investment per subscriber. With the conditions in which all operators have imposed a very cheap rate and relatively equal,then the competition in the telecommunications business for years to come will still be maintaining the quality service that focuses on improving the capacity and quality of the network (network) as well as customer service (customer service). Meanwhile, decline cost of tariffs, there are shifting patterns of use of

telecommunications services by the users of the voice service (voice) that requires a narrow band (narrow) to shift to the wide band (broadband) for data communications, including internet and multimedia.

PT. Telkom Indonesia,Tbk is a telecommunications company that competes in the infocom market, they have a superior product that is TelkomFlexi. Although have been a market leader, TelkomFlexi must have a new strategy to

formulated to be able to win in the competition of the infocom industry. To be able to compete against cellular competitors both CDMA and GSM products, the strategy must be evaluated by looking TelkomFlexi internal and external conditions that change dynamically. In the assumptions of changes at the time of the strategy formulated by assuming/conditions that exist today can make strategic business unit is to be no longer relevant. That has many factors can make the need for evaluation of business unit strategy TelkomFlexi including the

competiton in infocom industry which is very fast. Because each infocom company trying to create a different product innovation from the other infocom in order they product more have added value in the eyes of its customers. The entry of new players in the field of CDMA 2001x (especially SmartFren) that carries its EVDO Rev.A technology with the speed of 3.1 Mbps downlink data acces in the Divre VII Manado area particularly encouraging business unit

TelkomFlexi PT.TELKOM Divre VII to continue to perform corrective action and formulate new strategies in order to remainable to control market Wirelles fixed Access/CDMA in Manado area of at least retain its customers in order not to turn over to other operators, especially SmartFren that at this time is the toughest competition because currently TelkomFlexi in Manado area it is still not use EVDO technology, so users should be satisfied with the product TelkomFlexi acces-speed data (internet) that is only about 153 Kbps downlink. How TelkomFlexi can win in competition. Telkom must know itself, know its competitor, and know business environment. How Telkom know the tree above things. Competitive intellegence is the answer. Telkom need competitive

intellegence for gathering and analyzing information about it self, its competitor, and business environment. The product of competitive intellegence is scenario and strategy recomendation for management as decision maker to win in every battle. Therefore, competitive intellegence is urgent necessity for Telkom to maintain its position as leading and incumbent fixed wireless telecomunication company in Indonesia.

For the above

pnenomena

its

interesting

to

research

about

competitive intellegence for TelkomFlexi as a leading and incumbent fixed telecommunication company in Indonesia, especially how Telkom know deeply its competitors move in the battle field. For that we can analyzes conditions and positions product TelkomFlexi in the competitive environment towards sellular product and Fixed Wireless Access. Hence, this thesis will research about

Application of Competitive Intellegence Analysis On Product Telkom (Study Case : TelkomFlexi RO Manado). Competitive analysis and competitor analysis can be used as the engine in the analysis : 1. Competitive analysis can be done based on the market / resource comparison of other competitive product or services based on network infrastructure and product/services portfolio. 2. Competitor analysis can be done on the analysis on the condition of strength, weakness, opportunity, and threat of other competitor.

2. RESEARCH PROBLEM During the past year revenue per ROBTS TelkomFlexi RO Manado (North Sulawesi, Gorontalo, Maluku) continued to decline along with the decreased subscriber or customer TelkomFlexi product users based on statistical data of the Telkom RO Manado. 1 In term of intellegence research, research question are also called as Key Intellegence Topics (KITs) which are used to identify or prioritize an organizations key intellegence needs. This bellow is the research questions or key intellegence topics which will be researched: 1. How to increase revenue of TelkomFlexi Regional Office (RO) Manado based on statistic data is was decreasing for the last one year ? 2

1 2

Internal Data Telkom RO Manado Internal Data Telkom RO Manado

2. What are the strategies as intellegence product which must be recomended to Telkom management to take action towards SmartFrens downlink 3.1 Mbps that already launch in Manado city since 2010, compare than TelkomFlexi with the CDMA2001x with acces data 153 Kbps downlink, in order to win market in fixed wireless acces (FWA) battlefield in Manado ? 3. With the requlation from Head Office of PT. Telkom Indonesia, Tbk in Jakarta, that they will stop to expand network infrastruktur or add new BTS in Regional Office Manado, what is the strategy of

the network division to support the marketing team RO Manado in an effort to maintain and increase the new subscribers ?

To find a better solution for the questions above, the writer uses five porter analysis, SWOT analysis and Matheo Patent software. With using these tools we can know the conditions and positions product TelkomFlexi in the competitive environment towards sellular product (XL Axiata, Indosat, HCPT Tree) and Fixed Wireless Access (Esia, SmartFren), based on on that we can the strategy for answer the problem that face by TelkomFlexi Manado.

3.

OBJECTIVES. 1. Create strategi recomendation as intelligence product to support Telkom

management in order to win in fixed wireless Access (CDMA technology) in particular competitiveness against SmartFren movement in Manado city. 2. Create strategi recomendation as intelligence product to support Telkom management technology). in order to survive against competition with sellular (GSM

3.

BENEFITS The results of this study is useful to be considered scientifically that could PT. TELKOM Divre VII DATEL

be exploited by the management of

Manado to take strategic decisions that benefit for the company, especially in

improving the competitive advantage among other cellular operators also increase the subscriber & revenue in Manado area. Become a reference for academic research that can be developed by other

researchers.

5.

SCOPE & LIMITATION 5.1 a) The scope of this research is limited to a study of five cellular provider/companies in Manado, which is the nearest competitor : 1. Esia (CDMA) 2. SmartFren (CDMA) 3. HCPT Tree (GSM) 4. Indosat (GSM & CDMA ) 5. XL Axiata (GSM) b) Analisis SWOT akan dilakukan terhadap faktor lingkungan internal Telkom yang dikombinasi dengan faktor lingkungan eksternal yang diperoleh dari Pemodelan Porter 5 Forces. 5.2 Limitation of research is only North Sulawesi, and only five

operator companies are selected for the purpose of research.

6.

Research Methodologies The research is case study which uses qualitative data based on proven literature study which is proven with field data. In order to achieve the objective , in this thesis will use the steps of CI Cycle:

Step 1 : Collect the data/information. Collect the information about current Telkoms and competitor. The techniques of collection data are formal by online search using search engine google, annual report, and informal information. Step 2 : Information Management Identify the information sources and to choose the most suitable one

Step 3 : Information Analysis Competitive Intellegence analyzing using tools : Porters Five Force analysis, SWOT analysis, and Matheo Patent (trial version ver. 9.5) Step 4 : Understanding the Information Create strategy plan/recomendation for management Telkom RO Manado Division Telkom Flexi (DTF) based on result of Competitive Intellegence analysis.

Method Of Work

Collect information and identifying current Telkoms and competitors network system and product/service portfolio. 2

Collect Information and identifying competitor profile based on vission mission, future goals, assumption, and current strategy. 3 Competitive Intellegence analyzing using tools : Porters Five Force analysis, SWOT analysis, and Matheo Patent ver. 9.5.

Strategy recommendation (to support management action)

2&3

Data sheet (based on annual report & company website)

1. . 2. 3. The main focus of this research is TelkomFlexi. Finding, collecting and sorting information about TelkomFlexi and other. competitors, by interviewed, observation and mainly through the internet. 4. Competitive Intellegence Analyzing using SWOT , Porters Five Force analysis & Matheo Patent 9.5. 5. Create strategy plan/recomendation to support Management Telkom
Regional Office Manado

based on result of

analysis Competitive

Intellegence.

In term of intellegence research, research question are also called as Key Intellegence Topics (KITs) which are used to identify or prioritize an organizations key intellegence needs. This bellow is the research questions or key intellegence topics which will be researched: 1. How to develop competitive analysis which based on market and resources comparison of other competitive product or services ? 2. How to develop competitor analysis based on strenght, weakness,

opportunity, and threat (SWOT) assesment ? 3. What are the strategies as intellegence product which must be recomended to Telkom management to take action towards SmartFrens with the EVDO Rev. A technology moves in order to win in fixed wireless acces (FWA) battlefield in Manado ? 4. How to increase revenue of TelkomFlexi Regional Office (RO) Manado based on statistic is decreasing for the six months lately 1.