| Summary: | Nokia Siemens Networks is a leading provider of telecommunications
infrastructure network solutions that are created as a result of the combined division
of Siemens AG COM (not including the Enterprise business unit) and Nokia Network
business group. NSN solutions offered to the operator include the design,
optimization, supply of product, development, and maintenance of
telecommunications networks.
NSN ranked second on 2010, in terms of revenue as a global supplier of
telecommunications infrastructure, with net sales of 12.7 billion Uero. Above
conditions are not in line when viewed from the revenue per business unit , especially
Optical Networks business unit , which ranks only ninth based on market share of
revenue from Asia Pacific region. With that condition, the authors analyze the
competitive strategy of PT. Nokia Siemens Networks related to Optical Networks
business unit through performance evaluation based on Balanced Scorecard, as well
as internal and external factors of related business unit. Descriptive analysis was
conducted based on the information presented in the statement of the company's
performance in 2010, the results of the survey agency (Infonetics) for
OpticalNetworks market 2010, the results of the survey agency (BMI) for
telecommunications business in Indonesia, and interviews with the management of
NSN.
Above analysis that has been done, it is concluded that:
Company performance evaluation based on Balanced Scorecard showed
excellent results. By doing holistic sales strategy, the company won contracts worth
millions deal. The company also successfully implemented cost efficiency with the
development of efficient after-sales service system. Related to the optical network business, holistic sales approach has a positive impact with the increased sales of
optical network products. However, there are some shortcomings of the system
associated with competitive strategy of Optical Networks business unit. The
following are the drawbacks:
1. Implementation of holistic solutions often involves rebates in the form of
products and services which usually charged to less profitable business units
such as optical networks. This leads to percentage of revenues toward related
products lower than the volume of products and services received by the
customer.
2. NSN products and services prices are high relative to competitors. This
condition causes the flexibility of selling the products separately to be heavy.
Flexibility terms in this case are related to price approval process and costing
processes.
3. Technical resources development is strongly influenced by the sales made by
the company. This condition led to the development of specific resources in
one business unit relies heavily on the development of the business unit itself.
Above conditions are the reason why market share for the optical network
products relatively small. From the analysis of internal and external business
environment for optical network, author formulate strategic advices for the company
to increase sales of optical network products and services through conduct a strategic
partnership with a supplier of optical components, centralize business per area , and
product innovation.
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