XL Axiata is Indonesia's third largest cellular provider. It analyzes its external environment including macroeconomic trends, industry perspectives, and competitive forces. Internally, it examines resources, capabilities, value chain, and VRIN analysis. XL Axiata uses a SWOT analysis and strategic diamond model to formulate its business strategy. It follows a low price, high volume generic strategy and operational excellence value discipline. XL Axiata's business model centers on voice, SMS, data and value-added services delivered through marketing, sales channels and IT services. While telecom competition is high, XL Axiata can focus on data services, customer experience and strategic partnerships to maintain competitiveness.

1. Corporate and Business Strategy Personal Assignment
Corporate Strategy
Of XL Axiata
Pramita Wardani | 1140003121
1

2. 1 About XL Axiata
2 External Analysis
•
•
Macro Economy
Industry Perspective
• Competitive Environment
Internal Analysis
3 •
•
•
Resources
Capabilities & Core Competences
Value Chain Analysis
• VRIN Analysis
4 Analysis on XL Axiata Business Strategy
•
•
SWOT Analysis & Strategy Diamond Model
Generic Strategy & Value Discipline
• Business Model
Conclusion & Recommendation
5 •
•
Conclusions
Recommendation
2

3. 1
The Journey of
XL Axiata
3

4. New XL transformation mindset is
Feel 3.0
Fierce | Focus, Ambition, Persistent
Excellent | Accurate and quality services, deliver
experience
Leading | Think ahead
PT XL Axiata Tbk is one of Indonesia’s leading cellular service provider, offering various
types of telecommunications products and services such as :
Voice | SMS | Data | Other value-added mobile products & services
Corporate Strategy of XL Axiata 4

5. XL Axiata Structure Organization
Corporate Strategy of XL Axiata | 5

6. Revenue Growth XL Axiata XL Axiata Revenue Composition
2011 Q3
53%
Source : XL Axiata, 2011
Corporate Strategy of XL Axiata | 6

7. ARPU
Average Revenue Per Usage
• The revenue trend is
increasing while the ARPU
trend is declining.
• Telecommunication industry
is a very competitive
industry
No Provider 2009 2010 2011 2012f 2013f 2014f 2015f
1 Telkomsel 48,000 40,000 32,065 28,440 25,672 23,571 22,249
2 Indosat 37,330 34,700 26,692 23,327 20,850 19,144 18,070
3 XL Axiata 38,000 32,000 28,761 26,260 23,704 21,549 20,341
4 Bakrie Telecom 29,000 24,000 17,879 14,925 13,076 11,768 10,888
Market Average 38,083 32,675 26,349 23,238 20,825 19,008 17,887
Corporate Strategy of XL Axiata | 7

8. 2
External Analysis
• Macro Economy
• Industry Perspective
• Competitive Environment
8

9. Macro Economic
PESTEL Analysis
• There is no political events related to
telecommunications
Good economic
The telecommunication growth, and
law prohibits Indonesia is
monopolistic practices having a raise in
and unfair competition GDP.
The social
networkers
are also
expanding as
well
Go green society
The technology
changes is rapidly
Corporate Strategy of XL Axiata | 9

10. Industry Perspective
Mobile Phone Trend
in 2009-2016
Source : BMI, 2011
• The buyers in the mobile phone • This is the impact of the increasing usage
market grew by 23,55 and the trend of Blackberry, Iphones, Ipad, and others
is increasing. smartphones or tablets.
• In the 3G usage are also increasing
25% in year 2011.
Corporate Strategy of XL Axiata |10

11. Competitive Environment
Telecommunication Market Share The competitive landscape of
(Indonesia, 2011) Telecommunication industry in
Indonesia year 2010
Corporate Strategy of XL Axiata |11

12. Porter 5 Forces Alcatel-Lucent is targeting Asia. Now
Potential New they already have a strong relationship
Telecommunication Industry with Indosat and Telkom to expand
in Indonesia Year 2012
Entrants |
their business in Indonesia.
MODERATE
Suppliers Buyers
Bargaining Bargaining
Power | HIGH Industry Rivalry | HIGH Power | HIGH
Ranging from the packaging, Most people are not only
card production, BTS rental, price sensitive but also wants
headphones, IT provides, a good services and networks
music label.
The substitute of Substitute
Substitute
mobile phone is fixed Products ||
line and also internet
Products
connection through
MODERATE
HIGH
laptops using lan cable
Corporate Strategy of XL Axiata |12

13. 3
Internal Analysis
• Resources
• Capabilities & Core Competences
• Value Chain & VRIN Analysis
13

14. Resources
Tangible In-Tangible
XL Centre, Traditional Dealer, Non- Human In 2011, XL Axiata has 2,390
Infrastructure traditional Dealer, Dealer Modern employees. Every year the
Mobile Data Service, BTS Resources employees increased 3%.
GSM 900/DCS 1800; IMT-2000/3G,
as the 3rd biggest market share in
Technological Licenses of closed regular network Brand, image the telecommunication Industry in
(leased line), internet service
provider (ISP), Voice over internet and year 2011, XL Axiata has proven to
have a good brand name.
protocol (VoIP), and internet reputational
interconnection services (NAP).
By the end of 2011, XL Axiata XL Axiata has a relationship with
Financial recorded 1,75 Trillion IDR free cash 52,000 non-traditional retail
flow (FCF) outlets and 9,000 modern
Relationship channel outlets. Besides of that,
XL Axiata Knowledge Management
XL Axiata also partner with 1,133
System, Intelligent Canvasser
Organizational System (ICS), Intelligent
stores.
Merchandiser System (IMS).
Corporate Strategy of XL Axiata |14

15. Capabilities
XL Axiata main capability is in technology.
XL Axiata has the most modern core network NGN capabilities,
better capacity and operation management and is expandable to
match future technology requirements.
Core Competencies
XL Axiata’s core competencies : mobile and corporate solutions by
providing various types of telecommunication products and services :
Voice, SMS, Data and other value–added mobile telecommunication
services.
Corporate Strategy of XL Axiata |15

16. Va l u e C h a i n
X L A x i a t a Va l u e C h a i n
Service Information Distribution
Knowledge Marketing and
Design Technology Channel
Management Sales
High Marketing
XL Center KMS, ICS, IMS Technology &SMD Dealers
Human Resources
Procurement
Research & Development
Infrastructure
Corporate Strategy of XL Axiata |16

17. VRIN Analysis
Valuable Rare Inimitable Non
Substitutable
owns an XL Axiata has XL Axiata use It can be
extensive a Service Knowledge substitute
fiber optic Management Management with fixed
backbone Department System to lines and
network integrate all internet
the through lan
knowledge cable
No Components Valuable Rare Imperfectly Non
Imitable Substitutable
VRIN Framework
1 Resource v v x x
2 Buildings v x x v
3 Workflow System v v x x
4 Database v v x x
5 Reputation v v x x
6 Staffs v v x x
Corporate Strategy of XL Axiata |17

18. 4
Analysis on XL Axiata Business Strategy
• SWOT Analysis & Strategy Diamond
Model
• Generic Strategy & Value Discipline
• Value Propositions & Business Model
18

19. SWOT Analysis
Strengths Weakness
• The 3rd largest • Low product quality
telecommunication provider (network)
in Indonesia
• Mobile-centric operator
Opportunity SO Strategies WO Strategies
• Market penetration in internet • Global expansion to South • Diversify into new product
users are increasing East Asia markets
• Changing of people lifestyle • Create new application which
and habits gives value added to the
customers
Threats ST Strategies WT Strategies
• Market competition : price • Keep low price but still • Strategic alliance with
war, competitors heavy maintain the services third party
advertising
Corporate Strategy of XL Axiata |19

20. Strategic Diamond Model
1 XL Axiata have their expertise in the
telecommunication industry.
4 The 4 key initiative
transformation of XL 1
Axiata : Arena
1. Focusing to MDS
2. Enhancing service
quality
3. Increasing Customer 5 2 To achieve their goals, XL
4 Economic 2
Retention Logic Axiata do an internal
Staging Vehicle development by training
4. Strengthening brand
positioning their employees
Differentiators
3
5 Brand Name, Number Subscribers, Data, 3 Based on the usage revenue contribution of
SMS, Voice XL Axiata in year 2011, the trend in the
telecommunication industry is Data.
Corporate Strategy of XL Axiata |20

21. Generic Strategy Va l u e D i s c i p l i n e
No Strategy Before After
Operational Excellence :
1 Grand Strategy Hi Price-Low Volume Low Price- High
Volume • Providing low price with
2 Functional Strategy reasonable quality
• High quantity
A Price High Low
• Focus on efficiency
B Product Many brands Single
C Place Direct Dealerships
D Promotion Complicated Simple
Blackberry
Service Price
Comparison year
2012
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22. Va l u e P r o p o s i t i o n s & B u s i n e s s M o d e l
• Packaging • Internet • Low Price- • Customer • Personal
Vendors Services High Volume Care 24 • Corporate
• BTS Rentals • Customer • Single product hours/day
• IT Providers Services • Voice-Centric
• Music Labels • Simple and • Data-Centric
• Collaboration attractive • Domestic
with 3rd parties : promotions Backbone
Blackberry,
Iphone, Ipad,
Samsung
• Marketing • Website
• Sales • Branches
• IT Services • Mobile
• Call Center Applications
Services • Dealerships
• Outsourcing
BTS Rental | Network and Voice | SMS | Data | Other value-
infrastructure expand | added mobile products & services |
Maintenance equipment's | Ringtones | collaboration with 3rd
promotions parties
Corporate Strategy of XL Axiata |22

23. 5
Conclusion & Recommendation
• Conclusions
• Recommendation
• Implementation Issues
23

24. Conclusion
• Telecommunication industry is a very competitive industry. To maintain their
customers, XL Axiata not only competes in price but also innovation of its products.
• Xl Axiata is very concern to their customers. In this year they established Service
Management Directorate which coordinates strategy to give XL Axiata’s experience to
their customers and also employee.
• XL Axiata’s transformation to become a leader in data-centric is a good step. By
changing their business model, it could give a good impact to XL Axiata in the future.
Corporate Strategy of XL Axiata |24

25. Recommendations
Telecommunication industry is becoming a prospect industry in the future, even though
the ARPU (average revenue per user) is declining because of the competition among
providers. Providers try to decrease their expenses to keep maintain their profits. To keep
their competitiveness in the telecommunication industry, XL Axiata could implement new
strategies by using BCG Matrix.
High Low
Stars Question Marks
High
• 4G Technology Cloud Computing and e-
• HSPA+ , Money as a solution to
Market Growth
• WIMAX provide a go green
• LTE environment and reduce
cost.
Cash Cow Dog
Maintain and Voice – centric
Low
Building a BTS by
the outsource
company
High Low
Market Share Corporate Strategy of XL Axiata |25

26. Corporate and Business Strategy Personal Assignment
Corporate Strategy
Of XL Axiata
Pramita Wardani | 1140003121
26