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Telkomsel SWOT & PESTLE Analysis

ID : 521047653| Oct 2021| 18 pages

COMPANY PROFILE -Telkomsel

Business Sector :Telecommunications

Operating Geography :Indonesia, Asia

About Telkomsel :

PT Telekomunikasi Selular was founded in 1995 and is owned by Telkom Indonesia (65%) and Singtel (35%). It is headquartered in South Jakarta, Indonesia. The company’s business is divided into two segments: Personal and Enterprise. The Personal segments include products such as Telkomsel Prepaid, Telkomsel Hello, by.U, Roaming & IDD, Home Internet, Bundling, and 5G, while its services includes videos, games, music, Kuncei, and many other additional services. The Enterprise segment of the company provides its products such as cloud services, data secured access, digital smart city, IoT, Office 365, and many more to small and large-scale businesses, and government entities. Telkomsel has also launched a D’Frontrunner program that targets the corporate segment to assist the Digital Transformation initiatives. As of early 2021, the company has 5,371 employees and 231,172 BTS operating across Indonesia. On September 2021, Telkomsel was The Best Company to Work For in Asia 2021 from HR Asia. On May 2021, it launched the first commercial 5G network in Indonesia.

Telekomsel’s unique selling proposition or USP lies in providing the fastest 4G network and is one of the largest mobile internet providers in Indonesia. Telekomsel’s mission statement reads, “Deliver mobile digital services and solutions that exceed customers’ expectations, create value for our stakeholders, and support the economic development of the nation.”

Telkomsel Revenue :


Rupiah 87.1 trillion - FY ending 31st December 2020 (y-o-y growth -4.4%)
Rupiah 91.1 trillion - FY ending 31st December 2019

Competitive Analysis of Telkomsel

SWOT
PESTLE
The SWOT analysis for Telkomsel is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Largest wireless carrier in Indonesia
2. Large and loyal customer base
3. Pioneer in digital services in Indonesia
4. Strong financial performance and business model
5. Have one of the best workplace in Indonesia
1. Low growth in customer base
2. Declines in legacy business
3. Inability to monetize digital business in response to languishing legacy revenue
4. Lacking new capabilities / competencies to support the transformation of business process
OpportunitiesThreats
1. Indonesian telecommunication industry is one of the fastest growing in the world
2. Large pool of startup unicorns in Indonesia
3. Increasing innovation in digital payments sector
4. Leveraging shift to e-learning and e-health
1. Competition from recent mergers of private carriers
2. Threats to submarine cable communication system
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Telkomsel

Strength

1. Largest wireless carrier in Indonesia: Telkomsel has been an integral part of Indonesia’s telecommunication sector for the past 25 years. The company can be credited with making telecommunication services accessible across the large geographic expanse of the country. Presently, Telekomsel has over 170 million users, making it the largest cellular operator in Indonesia and has the widest network coverage in the country. Telekomsel’s 2G services reach almost 100% of Indonesia’s population, while the 3G and 4G services reach 87% and 96% of the population respectively. Telekomsel’s prepaid customers account for 96% of the customer brand. The company has four different brands for the prepaid segment to target different groups. Despite the challenges posed by the pandemic, Telekomsel saw the number of data users increase to 115.9 million in 2020 from 110.3 million in 2019 and 106.6 million in 2018.

2. Large and loyal customer base: For over 25 years, Telkomsel is consistently serving Indonesia, and providing its services from Sabang to Merauke. It is the largest cellular operator in Indonesia with more than 170 million customers. It serves customers all over Indonesia including remote areas, outer islands, and border areas. Due to its vast customer base Telkomsel was able to build over 233,000 BTS. It tries to continuously improve and expand its digital business such as Digital Advertising, Digital Lifestyle, Mobile Financial Services, and the Internet of Things to better serve its customers. MyTelkomsel app, and Telkomsel Virtual Assistant helps the company to meet the demands of the customers as well as provide them with 24/7 assistance.

The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Telkomsel PraBayar
  • Telkomsel Halo
  • By.U
  • Roaming & SLI
  • Telkomsel Home Internet
  • Telkomsel Poin
SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in Telkomsel SWOT & PESTLE Analysis Report

1. Annual Report 2020 - https://www.telkomsel.com/download?type=annual&category=report&file=TSEL-AR2020-WEB_final.pdf

2. Our History | Telkomsel - https://www.telkomsel.com/en/about-us/our-story/our-history

3. Telkomsel named The Best Company to Work For in Asia 2021 - Inforial - The Jakarta Post - http://www.thejakartapost.com/adv/2021/09/13/telkomsel-named-the-best-company-to-work-for-in-asia-2021.html

4. https://thediplomat.com/2021/06/the-security-challenges-facing-indonesias-submarine-cable-communication-system/

5. The Security Challenges Facing Indonesia’s Submarine Cable Communication System – The Diplomat - https://thediplomat.com/2021/06/the-security-challenges-facing-indonesias-submarine-cable-communication-system/

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Telkomsel SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Telkomsel SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/telkomsel/ [Accessed 19 Oct, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Telkomsel SWOT and PESTLE analysis has been conducted by Anangsha Saha and reviewed by senior analysts from Barakaat Consulting.

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