Introduction
Continuing from the previously conducted global industry comparative analysis, this final installment of a collection of business plan components centers on two major aspects: entry strategy and marketing strategy.
Please note that discussions of relevant information already tackled in the past reports (Projects 1-3) are no longer repeated herein. Specific references will be provided though.
Following this introduction is the Entry Strategy section, which has six sub-sections on: Indonesian market analysis, Indonesian environment value chain analysis, short-listing of potential foreign alliance partners, choice of entry strategy, financial investment requirements, and evaluation of degree of organizational fitness of Juniper Networks.
The next main section, Marketing Strategy, contains seven sub-sections that will discuss competitor analysis, evaluation of potential market size, estimation of market segment growth and profitability, distribution channel strategy, traditional marketing mix of 4Ps, e-marketing considerations, and revenue forecasts.
To summarize all information from past reports, it has been proposed that Juniper Networks further globalizes its existing operations by penetrating the Indonesian market. As a network solutions provider that caters to clients providing network services to their institutional customers, the company is expected to massively benefit from serving the Indonesian market, hence the substantive discussions that follow to justify the international expansion.
Entry Strategy
The Indonesian Market for Juniper Networks Products
The company’s mission to “solve the world’s most difficult problems in networking technology” (www.juniper.net) is a good way to start when analyzing the Indonesian market. What needs and/or wants of the entire country with respect to networking technology currently exist and will be potentially created?
Despite low Internet and networking usage, recent trends indicate that the Indonesian networking industry is steadily growing. As of early 2019, the market is dominated by five licensed networking and mobile operators, namely Telkomsel, Indosat, XL Axiata, Ooredoo, Tri, and SmartFren. Telkomsel is government-owned, since the national government is the majority stockholder. As for Indosat, the government’s minority stake is around 14% (Sidik, 2019).
Additionally, Internet penetration as of 2016 was estimated at 34%. While the cost is very inexpensive, Internet quality is poor with an average speed of only 3.9 mbps; but speed can go up to 7.2 mbps within 4G locations (Das, Gryseels, Sudhir, & Tee Tan, 2016).
Furthermore, utilizing results from the PESTEL analysis (see Project 3), from the economic and technological environments come demand sustainability factors that are favorable to Juniper Networks products. As previously identified, Indonesia is: 1) now considered a major emerging economy, 2) a potential major foreign direct investment destination, and 3) technologically revolutionizing its various industries through the Making Indonesia 4.0 strategy. Particularly, the inherent requirements of Internet of Things or IoT, artificial intelligence, human-machine interface, 3D printing, and robot and sensor technology will create and/or sustain demand for networking technology solutions.
Indonesia’s Global Value Chain Conduciveness
According to the Organization for Economic Co-operation and Development or OECD, openness to international trade, either importing or exporting, is a major requirement for an effective global value chain. Specifically, OECD underscored tariffs and red tape as major barriers to the world’s currently reality of production revolution (OECD, 2013).
While it is complex to evaluate Indonesia as a country conducive for global value chain analysis in the context of Juniper Networks’ primary and support activities, prior analysis (see Project 3, Global Value Chain section) has concluded that the country has already transitioned from an authoritarian government; the assessed better freedom under a new leadership is positive indication of Indonesia’s embrace of globalization, which fosters global value chain.
Short-listing Strategic Alliance Partners
It is essential for Juniper Networks to collaborate with any of Telkomsel, Indosat, XL Axiata, Ooredoo, Tri, and SmartFren and the national government to strategically expand its business in Indonesia. Fostering strategic alliances is vital for company success. Firstly, alliances can help reduce operating costs as well as better understand local demands. Secondly, another important factor to note is Indonesia’s inexpensive labor when compared with costs of other countries, so Juniper Networks truly benefits from acquiring supplies locally

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