Publikasi KK Ilmu Kemanusiaan :”Russian Enterprise Telecommunication Market as Another Telkom Indonesia’s New Enterprise Market”

 

Jour of Adv Research in Dynamical & Control Systems, Vol. 11, 03-Special Issue, 2019

Russian Enterprise Telecommunication Market as Another Telkom Indonesia’s New Enterprise Market

Marheni Eka Saputri*, School of Communication and Business, Telkom University, Bandung, Indonesia.

E-mail: marhenieka@gmail.com

Nia Kurniasih, Faculty of Arts and Design, Bandung Institute of Technology, Bandung, Indonesia.

E-mail: nia.kurniasih.itb@fsrd.itb.ac.id

Ganjar Daniswara, Adam Smith Business School, University of Glasgow, Glasgow, UK.

E-mail: ganjar.daniswara@gmail.com

Abstract

Telkom’s strategic objective is to accelerate international expansion. The arising issues of this situation are how a strong country such as Russia and its enterprise telecommunication market is seen as a potential new market for Telkom Indonesia and what preferable entry strategy is to be applied. Porter’s five forces analysis of Russian enterprise telecommunication market was used to examine competitive pressure and degree of profitability of the industry. Analysis of Porter’s Diamond of Russia has shown that the country has strong national competitive advantages which, in turn, give strong advantages to companies that conduct businesses in Russia. Analysis results have also revealed that Russian telecommunication industry is attractive to explore. Having chosen Russia as a new market, Telkom Indonesia has been recommended to enter the country’s market through equity investments. Preferable entry mode strategy, on the other hand, has shown that environmental and production factors of the Russian market, Indonesian people, and internal company (Telkom Indonesia) are more favourable than equity investment or production entry mode. Due to high political risks, joint venture is more preferable than whollyownedsubsidiaries.

Keywords— Tekom Indonesia, Porter Five Forces Analysis, International Expansion.

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