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This case discusses the concepts of broadband and its adoption in developing and developed countries around the world, specifically in Indonesia. The telecom sector in Indonesia had under-developed infrastructure, and been dominated by two monopolies, PT Telkom and PT Indosat ("Indosat"), for many decades until September 2000, when the government opened up the sector to competition. The market has subsequently become highly competitive. This case highlights the strategies proposed by Indosat to succeed in this market, with broadband penetration being identified as one of the primary revenue-generating and growth areas for 2008. As is the case with most developing countries where the fixed-line infrastructure is minimal, the plan is for broadband technology to evolve through wireless platforms. This case can be used to understand Indosat's proposed strategy to promote broadband, particularly wireless broadband, in Indonesia. It can also be used to discuss the general issues that emerge in providing telecom services in a developing country, particularly where a formerly government-owned monopoly player faces an increasingly competitive market. The case provides students an opportunity to discuss the best way to implement the company's proposed strategy, given its competitive advantages and the constraints imposed by the external political, regulatory and economic environments.
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Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia, is to not only build a competitive position of the organization but also to sustain it over a period of time.
The Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
In the Texas Business School, Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia
The first step to solve HBR Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Broadband Indosat is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Broadband Indosat, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia.
The external environment analysis of Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study. PESTEL analysis of " Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia macro-environment and how it impacts the businesses of the firm.
To do comprehensive PESTEL analysis of case study – Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia , we have researched numerous components under the six factors of PESTEL analysis.
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Government policies have significant impact on the business environment of any country. The firm in “ Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Broadband Indosat is operating, firms are required to store customer data within the premises of the country. Broadband Indosat needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Broadband Indosat in case study Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Broadband Indosat in case study “ Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Broadband Indosat in case study “ Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Broadband Indosat can compete against other competitors.
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Broadband Indosat needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia case study. PESTEL analysis of " Bridging the Digital Divide: Indosat's Drive for Broadband Penetration in Indonesia" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
Amanda Watson
Amanda is strategy expert at Texas Business School . She is passionate about corporate strategy, competitive strategy, game theory, and business model innovation. You can hire Texas Business School professinoals to revolutionize your strategy & business.
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