| Summary: | The objective of this paper is to analyze the competition in
Telecommunication Industry in Indonesia faced by PT Bakrie Telecom Tbk, and
to see the opportunities and threats that may exist. Bakrie Telecom�s strategy of
company revitalization, which is endorsed in 2012, is then being evaluated based
on those opportunities and threats, and based on industry forecasts and trends.
The methods of research used in this paper are Porter�s five-forces
analysis, SWOT analysis, and analysis based on industry/market reports. The
Porter�s analysis indicates Internal Rivalry to be the strongest force in the
industry. SWOT analysis identifies that opportunities are there for Bakrie
Telecom to evolve, mainly in mobile data services.However, there are also threats
that the company must overcome such as the decreasing ARPU, weakening Esia
brand image, high churn rate, and the existence of Wimax as substitute. The
Revitalization Strategy is identified to be the right decision, as it accommodates
most of the opportunities and threats, and some of the industry trends. However, it
requires very strong leadership from the company�s leaders, and there are still
unexplored opportunities such as corporate business and 4G technology.
Advise from this paper is for the company to consider coopetition
strategy, and assess the possibility to merge with other company. The company
leaders must also be willing to make dialogues with the employees. Furthermore,
the company must also start adopting 4G technology development to anticipate
telecommunication evolution in the future.
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