People Innovation Excellence

[Case Study] XL Axiata: Overturning Indonesia’s Telco Industry

Year: 2011

Case number: 111-1503-001

Case Author: Firdaus Alamsjah

Course Major: Strategic Management

Related Topics: Strategic Execution

Teaching Note Availability: XL Axiata: Overturning Indonesia’s Telco Industry  [Teaching Note]

Abstracts:

When Hasnul Suhaimi became CEO of XL Axiata in September 2006, he initiated dramatic changes to raise the company’s rank and revenue. After over a decade of XL always ranking third in Indonesia’s cellular provider industry and a market share of less than 15 percent, Suhaimi’s strategy not only influenced the telecom industry to the benefit of consumers all over Indonesia, he also moved XL Axiata to second place and increased its market share to more than 20 percent.

To achieve this, Suhaimi had to change the business strategy from high-price, low-volume to low-price, high-volume. To execute the strategy, he had to change the company culture, as well as its people management practices. The results affected the nation’s telecommunication industry: prices plummeted, competition increased, and consumer spending increased.

The challenge in this case study is to define a strategy in order to sustain in a static market where competition used similar strategies on the same targets.

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