The Group Field Project assigned by Satelindo was to find out the users' most values and expectations in IDD service generally and IDD-OO8 particular.

In the IDD business, there are only two competitors at the moment. The competition in this market is very tight because the Competitor, Indosat, is a very solid and strong company. The Competitor is trying very hard to keep its market share and is not willing to share the pie with Satelindo.

The survey has revealed that most users preserve Indosat better than Satelindo. In addition, their awareness of Indosat's advertisements is better than Satelindo's. Their expectation in IDD service is to have cheaper tariff, fast connection and voice clarity. In terms of secondary service features, friendly, polite, and professional operators are in their expectations.

The Government prohibits price competition. Therefore, the price has been set for both providers. Further, Satelindo has to pay additional cost where Indosat does not have to. In this respect, Indosat has an advantage to give further price reduction, in term of discount, to certain users. In addition to the size of market where Indosat has been the market leader in this market, it has put Satelindo find difficult position to compete.

The Group has found that in order to create the perception to the users, Satelindo needs to spend in the advertisements. At the same time, it creates perception that being the second in the market. It could give better service than the first player.

In the short term, we recommend that Satelindo needs to be more selective in the market selection to the advertising expenditure. Being the second in the market and having been competing with the market leader with stronger financial condition in every aspect, Satelindo only can concentrate in certain market and be more creative and innovative in selection of advertising agents.

In the mid term, more funds would be needed, we then propose for Satelindo to have further thought to form strategic alliances with other companies to enhance the Company's technology, which eventually can strengthen its core capabilities and/or to go public to create public sense of belonging.



Research Location: Satelindo

Supervisor: Dr. Hadi Satyagraha Ph.D

Accepted on January 1999



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