The study aims to evaluate the competing strategy opted by PT Telkomsel in the
midst of the fierce competition in telecommunication industry marked by inter-operator tariff
war in penetrating new business apart from its core business, which are voice calls and short
text messages.
The analysis methods used in this research include the company�s internal-external
analysis, SWOT analysis, and selection of best fitted strategy. The company�s characteristic
highlighted in this study are the market share and the industry growth, the widened range of
rivals' competitiveness, the required investment for new business compared with the value of
economies of scale, supported by the cellular industry growth rate, the limited number of
strong competitors, technological change, and the opportunities for the company perform
vertical integration.
From Porter�s 5-Forces analysis, it can be concluded that the the strongest intensity
level is in the intensity of industry competition and bargaining power of buyers, while the
threat of entry of newcomers and power suppliers are at the lowest intensity level.Key success
factorin the writing of this thesis includes the fulfillment of basic five parameters of cellular
users in Indonesia, namely: wide range of network deployment, deliver quality network
supported by the latest technology, product innovation and service, customer service
standards of the ISO international quality, and reasonable rates
A suggestion from the analysis is the requirement fro the telecommunication company
to undergo a business transformation, ie to data services and internet business. This has been
initiated by Telkomsel as the market leader in the Indonesian telecommunication industry.
Telkomsel is preparing to enter into a new business, the data services and Internet business.
The percentage of the new business contribution to total business has increased. In 2010 the
percentage was 7%, in 2011 became 13%. This shows thatTelkomsel has transformed its
business properly, because it has more than doubled from the previous year