II. Strategic Management

Board of Directors

Hasnul Suhaimi

President Director / Chief Executive Officer (CEO) (56, Indonesian)

Appointed as President Director in September 2006, he previously held in various directorship positions in Indosat in 1997-1998 and 2002-2006, with last position as President Director. He was also the President Director of Indosat Multi Media Mobile (IM3) in 2001-2002 and the Director of Commerce of Telkomsel in 1998 - 2000. He graduated from Bandung Institute of Technology (ITB) in 1981 with a degree in Electrical Engineering before earning his Master of Business Administration degree from the University of Hawaii, USA, in 1992.

Dian Siswarini

Deputy President Director/Deputy CEO

Ibu Dian Siswarini has more than 20 years of experience in telecommunication industry. She started her career in 1991 and during 1996 until 2013 she joined XL with various key positions in Network and Engineering.

In 2007 she was appointed as Director of Network and Services which title was further changed into Director/ Chief Technology. Following the Companys strategy development , she was further lead the Content and New Business As Director/ Chief Digital Services Officer until 2013

In June 2014, she developed her professional career in Axiata as Group Chief of Marketing and Operation Officer with main objective to help development of all Axiata Opcos including the Company.

Ibu Dian graduated from Bandung Institute of Technology / Institut Teknologi Bandung and has completed executive programs among others Harvard Advance Management Program, Harvard Business School, USA in 2013.

Willem Lucas Timmermans

Director / Chief Strategic Transformation Officer (CSTO) (50, Dutch)

Appointed as Director/Chief Operational Officer in May 2011, previously he served as Finance Director since December 2006. He has over 24 years of experience in the telecommunications industry. He was the Vice President of Business Control & Investor Relations at PT Telekomunikasi Seluler Indonesia (Telkomsel) in 2003 until November 2006 and the Finance Director of PT Bakrie Elektronik (Indonesia) until the end of 2000. He also held various strategic senior positions at KPN, a Dutch telecommunications company, until 1997. Since March 2011, he has also been a board member of Celcom Axiata Berhad. He graduated from the University of Groningen, the Netherlands, in 1988, majoring in Business Economics and Financing.

Mohamed Adlan bin Ahmad Tajudin

Direktur / Chief Financial Officer (44, Malaysian)

Appointed as Director/Chief Financial Officer in September 2011, he has more than 18 years of experience in the field of finance and telecommunication. He began his career with Arthur Andersen & Co from 1993 to 2002 in Assurance and Business Advisory. Subsequently, he joined Celcom Axiata Berhad in 2003 and was later appointed as the Chief Financial Officer (CFO) in May 2005. He was then given a new responsibility as the Chief Corporate Officer (CCO) in May 2009 looking after a wide range of business portfolios.

During his tenure at Celcom Axiata Berhad, he was instrumental in implementing the Performance Improvement Program that led to its turnaround and 21 consecutive quarters of continuous growth.

A graduate of Economics and Statistics from the University of Exeter, United Kingdom, he is a Chartered Accountant with the Malaysian Certified Public Accountants and a member of the Malaysian Institute of Accountants.

Ongki Kurniawan

Independent Director / Chief Service Management Officer (CSMO) (41, Indonesian)

Appointed as Director/ Chief Service Management Officer in September 2011. He joined XL in early 2009 as VP Corporate Strategy and Business Development and was a Senior VP of Service Management before his appointment as Director.

Prior to joining XL, he was a Principal at the Boston Consulting Group (BCG), with extensive experience in leading a number of consultancy projects in Telco and Banking industries across Asia and Europe. In 2005-2006 he was assigned to Boston, USA as part of the Top Performers program. Previously, he worked at Citibank Global Corporate and Investment Banking as Senior Credit Analyst/AVP.

He graduated from the Bandung Institute of Technology in 1995 with an Engineering degree, and was conferred a Master of Business Administration degree from Haas School of Business, University of California at Berkeley in 2003. He has completed all levels (1-3) for the Chartered Financial Analyst (CFA) program from the CFA Institute (1999-2001).

TOP MANAGEMENT

Tan Sri Dato Ir. Muhammad Radzi bin Haji Mansor

President Commissioner (72, Malaysian)

Appointed as President Commissioner in May 2006. Currently, he also serves as Chairman and Director of Menara Kuala Lumpur Sdn. Bhd., Chairman and Director of Kumpulan Fima Berhad, Director of Post Malaysia Berhad, and Director of Mewah International Inc. (MII) Singapore. He formerly served as Chairman and Director in Group Telekom Malaysia Berhad from July 1999 until July 2009. He graduated with a Diploma in Electrical Engineering from Faraday House Engineering College, London (1962) and a Masters degree in Science (Technological Economics) from the University of Stirling, Scotland (1975). He has extensive experience in the telecommunications industry spanning more than 40 years.

Dato Sri Jamaluddin bin Ibrahim

Commissioner (55, Malaysian)

Appointed as Commissioner in July 2008, he currently holds the position of President and Group Chief Executive Officer of Axiata Group Berhad ("Axiata") and has done so since March 2008. He is also a Board Member of Axiata and Chairman of Celcom Axiata Berhad. His previous experience includes prominent positions with Maxis Communications Berhad, which he joined in 1997 as Chief Operating Officer, subsequently becoming Chief Executive Officer (CEO) in 1998; he was reappointed as the Group CEO in 2006. He retired from Maxis in July 2007 but remained a Board member until February 2008. Before joining Maxis, he spent 16 years in the IT Industry. He was a Managing Director and CEO of Digital Equipment for 4 years and spent 12 years in IBM. He graduated from California State University, USA in 1978 with Bachelor of Science degree, Major in Business Administration and Minor in Mathematics; and in 1980 he was awarded a Master of Business Administration, Major in Quantitative Method, from Portland State University, Oregon, USA.

Azran Osman Rani

Commissioner (43, Malaysian)

Appointed as Commissioner in April 20113, currently he is CEO of AirAsia X Berhad and sits on the Board of Directors of Tourism Malaysia. Prior to his appointment, Azran was formerly the Senior Director of Business Development for Astro All AsiaNetworks plc. and Associate Partner of McKinsey & Company. He holds a Masters degree in Management Science and a Bachelors degree in Electrical Engineering, both from Stanford University. He is a Fellow of CPA Australia.

Chari TVT

Commissioner (57, Indian)

Chari TVT is currently the Group Chief Financial Officer of Axiata. He was appointed on 1st January 2014. Prior to this he served as Chief Financial Officer of Celcom Axiata Berhad from May 2009, and contributed for many initiatives that contributed to the excellent financial performance of Celcom, making it one of the most profitable companies in Malaysia.

Prior to joining Celcom, Chari was the Vice President, Sales, HP Financial Services Asia Pacific and Japan. He spent 20 years at HP with various of senior finance positions in various countries such as Hong Kong, Malaysia, Thailand and Singapore.

Chari holds an MBA from State University of New York in Buffalo. He is a member of the Chartered Institute of Management Accountants UK (CIMA), Malaysian Institute of Accountants (MIA), an Associate member of the Institute of Chartered Accountant (ACA) and Institute of Cost and Works Accountants (ICWA) from India.

Peter J. Chambers

Independent Commissioner (58, Australian)

Appointed as Independent Commissioner in April 2008, he previously served as Commissioner since May 2006. He graduated from the Royal Melbourne Institute of Technology in Melbourne, Australia, in 1985with a Bachelor of Business. He has more than 20 years experience in the finance and telecommunications industries, gaining him appointments to a number of important positions in various international companies. Presently, he also holds position as Managing Director and Company Director of Rajawali Corpora since 2005.

Yasmin Stamboel Wirjawan

Independent Commissioner (45, Indonesian)

Appointed as Independent Commissioner in April 2011, she currently serves as Advisor at PT Pefindo (Credit Rating Indonesia). Experienced for 16 years in the capital market research in various securities companies, among others, PT Bahana Securities and PT Nomura Indonesia. Last served as Director, Analytical Manager and Team Leader - South and Southeast Asian Corporate and Infrastructure Ratings at Standard & Poor's Credit Market Services, Singapore. She holds a Bachelor degree of Business Administration with concentration in International Business from American University of Paris - France in 1992 and a Master of Science in Finance from Brandeis University - Massachusetts, United States in 2000.

III. External Environment

A. Natural Environment

Regulation

XL applies criteria set by industrial standards, both internal and external, to ensure independent and accurate Customer Service (CS) performance measurement. Not only XL meet the standards of Indonesian Telecommunication Regulatory Body (BRTI), but also exceed the standards repeatedly as evidence of our commitment to provide the best experience for customers.

Permit

The background of this committee is to meet XL business development and comply with Bank Indonesia regulations related to XL Tunai and Money Transfer Operations (KUPU) permits owned by the Company.

PT XL Axiata Tbk claimed to be ready to invest to organize a long-term service evolution (LTE), alsoknown as 4G at a frequency of 1800 MHz. The Company obtain licensing the use of the 1800 MHz frequency to use LTE technology from government.

Responsibility

Since 2009, XL has launched XL Go Green movement as a concrete action to save the Earth from various threats of environmental destruction and global warming. Donation for Social and Political Activities XL is committed to professionally implement governance. We act independently, not affiliated to any political force and have never been involved in political activities or provided assistance to political activities. Instead, increased concern for social and environmental issues is an important part of the Companys duties and responsibilities towards stakeholders and the community delivered through CSR (corporate social responsibility) programs :

1. Direct Energy use

Direct energy use in a substantial number of XL operational activities is the use of diesel fuel for generators at BTS sites under coordination of Power Engineering and XL offices (Head Office, Regional Office / RO, Grha XL, MSC, Network Building) under coordination of Facility Management.

2. Indirect Energy use

Indirect energy use is electricity consumption for XL operational activities supplied by PLN. XL implements policies to reduce electricity consumption (Smart Electricity) with automation and centralization lighting and air-conditioning (AC) settings in all XL buildings. Air conditioners and lighting are turned on automatically at 6:00 in the morning and will be turned off at 18:00 in the evening, and at break hour (12:00 to 13:00). The system implemented since 2006 is believed to be able to reduce electricity consumption cost up to 10%. Another effort is standardization of cooling system at data center to reduce running hours of cooling units without reducing the cooling capacity and quality among others by setting the placement of rackd in data center in order to get the most optimal cooling. Looking ahead, containment system will be applied at data center to further improve efficiency and reduce electricity consumption.

3. Water Resources usage Efficiency

Most of the water we use is supplied by the water company (PDAM) and a small portion comes from ground water whose use is in compliance with local regulations regarding groundwater management. Since 2008 XL has recycled domestic wastewater in Jakarta offices by applying STP (Sewage Treatment Plant) system Biotech or wastewater treatment plant where domestic wastewater is biodegradable to reduce the content of environmental contaminants. Furthermore, filtering is done in WTP (Water Treatment Plant) units so that decent recycled water is reused for certain purposes. Obtained saving Capacity is about 5,000 liters / day. We ensure that during the reporting period there was no finding / complaint from local community related to disruption of ground water sources, pollution due to domestic waste water quality standards, or suspicion of its impact on biodiversity in water bodies / waterways.

4. Waste and B3 waste Management

Management of domestic waste from XL operational activities is undertaken by business partners. As for non-B3 metal waste wherever possible we reuse or handed over to competent third party. We reuse as much as possible various non-B3 waste, for example utilization of acrylic material from used GCP panel for schedule board at front security post, angled plates from used voucher cabinet for generator battery mounting and so on. XL operational activities do not generate B3 waste, but routine generator maintenance activities such as oil replacement generate B3 waste. Maintenance is done by contractors with service contract system so that used oil waste management is under contractors responsibility.

5. Battery Recycling

XL also has recycled, remanufactured and reused broken batteries to support XL service networks throughout the country. This program has been done since 2007, as an initiative of XL employees to innovate. Although currently battery recycling efforts have not reached adequate efficiency and effectiveness level, used batteries management will continue to be pursued to reduce polluting technology waste.

6. Environmentally friendly BTS

We take various actions to be able to operate efficiently. Energy savings both at work and equipment at sites become the main focus while maintaining a commitment to go green. Since 2010, XL has been developing the BTS (Base Transceiver Station) tha are energy efficient and environmentally friendly. Technology development producing the latest devices which are more energy efficient and more environmentally friendly, has encouraged XL to continue developing Innovative BTS that are capable of reducing Total Cost Ownership (TCO) and making XL more competitive.

7. Environmentally Friendly Air Conditioning System

In 2005, we began to modify air conditioning system (AC) both at work and BTS units. Gradually CFC R22 coolant that can damage ozone and is greenhouse gas is replaced with non-CFC R410 coolant which is ozone free, does not damage ozone layer when released into the air. In addition to ozone friendly, R410s advantage is having Coefficient of Performance (COP) three times higher than R22. High COP indicates that the cooling effect produced is higher than the energy consumed thus more efficient. Hence, XLs investment for cooling system modification will generate positive returns. As at end of 2013, there were 10,141 XL BTS units using non-CFC coolant.

8. Reducing Diesel Fuel Consumption

At BTS whose location is not supplied by PLN electricity, the power source is obtained from generator (genset) fueled by diesel fuel that should be on for 24 hours continuously. To reduce diesel consumption optimally, XL applies Charge Discharge Battery (CDC) system, where the main electricity supply comes from batteries and generators are in standby position to recharge the battery voltage back up to the full only when necessary. With this system, the generator life time can be reduced to only 11 hours a day, hence reducing diesel fuel consumption by about 54% from the previous. Indirectly, reduced genset operation affects carbon monoxide gas emission which is one of greenhouse gas emissions. By the end of 2013, 635 BTS have been installed with CDC system.

9. Optimizing Cooling System Performance

By the end of 2013, 3,490 XL BTS units have used Intelligent Ventilation Cooling System (IVS) which combines the use of DC fan and Air Conditioning (AC) as the cooling system at BTS. The use of DC fan helps reaching the desired temperature faster hence the AC works less. The use of IVS has reduced AC operating time of up to 30%.

10. BTS Technology Modernization

XL has modernized BTS technology and network so as to reduce energy consumption up to 60%. Network modernization carried out includes replacement of Radio Base Station (RBS) and Base Station Controler (BSC) with the latest devices with advantages in terms of efficient use of space, power consumption and technology which are able to adapt to evolution of the use of gadgets for the future. This modernization process complements the previous network modernization using softswitch and IP Transmission. XL chooses the latest network devices that are more environmentally friendly, with lower power consumption, of smaller size, and adopt Single RAN concept, which can integrate multiple BTS types into a single BTS.

11. Green BTS

In line with the mission of energy saving and environmentally friendly, XL invests in network modernization with the latest technology Green BTS that reduces energy use of up to 50%. This efficiency is possible because Green BTS transmits and receives (transceiver) using 3G technology. At the end of 2013, the number of Xl BTS Green reached 8,507 units, increased rapidly from 2,408 units in 2012.

12. Biodiversity

XL has a policy in BTS network installation to always avoid protected forest areas or areas with high biodiversity. This is also undergone with consideration of easy access for purposes of equipment supply and regular maintenance. During the reporting year, we ensure that there was no BTS construction in protected forest area or close and adjacent to areas that have high biodiversity. With our various innovations in efficiency for BTS devices including reducing the use of generators, we believe that the presence and operational activities of BTS do not affect the surrounding environment including noise impact and changes in the ecosystem. XL always demonstrates high commitment in efforts to conserve the environment in which the implementation is done through various programs and activities. We undertake greening efforts by planting trees and other plants in office area and at BTS sites. During the reporting period, sanction was never imposed on XL including fines for violations of environmental laws and regulations. XL tries to carry out operational activities in compliance with all applicable regulations, including environmental regulations. With this report, we also report implementation of XL social and environmental responsibility (TJSL), as mandated in article 66 clause 2 C, Law No. 40 of 2007 concerning Limited Liability Companies.

B. Societal Environment

Politics Factors

Positives: The existence of rules or regulations governing the trading activities conducted by PT. XL Axiata along with competitor competitors so that no violation of breach of the competition including monopoly activities.

Some government policies in regulating the mobile telecommunications industry is considered less attention to the real conditions. For example, the government encourages mobile operators to increase the coverage area of service, but the government restricts the formation of BTS. (Antaranews, 2011)

Negative: political risks arising from political instability at home and abroad which led to changes in government policy such that the potentially adverse impact on the company. The risks include instability relations between states or political parties is the fierce debate. These risks could impact directly or indirectly on the social conditions and attracted media attention in general, which can ultimately affect the company's operations.

PT. XL Axiata constantly applying the principles of good corporate governance and has implemented various corporate social responsibility programs and other activities for the benefit of the nations and encourage a healthier relationship between countries. All of this eventually will help sharpen the focus on shared values, which upheld together so that the nation can work together to achieve a balanced relationship and mutual benefit.

Economical Factors

1. Population growth

Large population and rapid economic growth has led to significant demand for telecommunications services

2. Economic growth.

Indonesia's economic growth is increasing from year to year in the development of the telecommunications world. Under these conditions, the economic development will be positive for the development of the telecommunications world. With such a growth rate above the expected economic activity will increase, so will increase the demand for telecommunications services. so the telecommunications industry will continue to grow in line with Indonesia's economic growth will increase the demand for telecommunications services. On the other hand the telecom industry is also a positive impact on the development of economic development. It is very likely due to the presence of a good telecommunications infrastructure, the economic activity will be efficient since the flow of good information exchange voice, video and data done quickly and cheaply, thus simplifying production and reducing production costs include travel costs. Effective due to the ease and sufficient information so businesses can plan more accurately and business decision-making effective and targeted so as to reduce the risk of failure in business.

3. Revenue of Industry

Internet industry has contributed to the substantial foreign revenue annually. Even contribution to Gross Domestic Product (GDP) is also very high. In the 2014, Telecommunication Industry 1,3% from PDB.

4. The global economic crisis

The possibility of the global financial crisis will adversely affect materially to the company. Indonesia has felt the effects of the global financial crisis. The inflation rate increases, importing countries to lower the order and the value of exports also declining. Some companies implement programs to decrease the number of employees and unpaid leave. All these factors lead to a decrease in the level of consumer spending, which has a negative impact on revenue XL.

5. inflation and deflation

Inflation and deflation influence in the price of goods and services. When inflation is very sharp, control of wages and prices.

Social Factors

Social factor of business life play an important role, especially for business continuity in the long term. Along with the times, in which the GCC technology era following the development of human life. Modernization era characterized by advanced communication devices such as telephone, internet services even to the conference call, is evidence of how developments in technology widely influential in the social life of the community. In today's modern era, the social aspects of society in Indonesia, particularly in need of everything that is practical and efficient.

Means of an effective and efficient communication became one of the vital needs of the community. One fact is that the public interest in Indonesia will be a means of mobile phones and the internet. The devices are represented as the communication needs of society at this time, so it happened fierce competition in the provision of equipment and networks for the communication.

Technological Factor

Today the development of the telecommunications sector in Indonesia is very rapid, it is proved by the increasing telephone service users and the data from year to year. From the technology offered course from year to year has been progressing very fast, this happens because the characteristics of the telecommunications industry are included in the type of high technology. Properties in the high technology industry can be used strategies / main weapon to win the competition with the mastery of technology and technology offered to consumers.

Communication technologies have a role similar to bridges, roads and ports. This technology is able to open up the relationship between the area and can ultimately increase the economic growth of the region. So that the role of this technology has become increasingly important, not only as a medium of communication, but also as a factor supporting the business.

At present, more advanced technology. Among the trend of smart phones that use packet data. In this case the more development of technology, more and more data services in need of customers to surf the internet. Thus, the data packet xl sales increased as well.

XL as operators leading provider of mobile telecommunications services in Indonesia provides a variety of technology-based services with the GSM network. One of the services that have been developed XL in addressing the challenges of corporate and individual business is to provide solutions Machine2Machine (M2M).

M2M is a service that allows electronic devices to communicate with each other. M2M business can be applied in various industrial products and services, as well as individual needs.

Xl is one of the mobile Internet services providers in Indonesia. The company pioneered the use of 4G-LTE spectrum to provide a different experience for the community in Accessing Data services over the currently fastest wireless communication networks. By providing mobile internet network with better reception

The quality, more stable and faster transfer of data information exchange, XL would like to open new opportunities for all levels of society, the which allow them to deploy and utilize all Reviews their potentials, so they have the chance to improve Reviews their quality of life. XL would like to always provide the maximum contribution to the advancement of Indonesia.

Challenges in the future is full transformation to become a company that focuses on the customer, supported by technology and appropriate organizational structures and that can make all workers, working effectively.

C. Task Environment

Analysis of Five Porter Power consists of the threat of substitute products, new entrants, suppliers, buyers and industry competitors. In this picture the analysis of five power porter at PT XL Axiata:

Figure 3.1 Model Competition Porter

A. Bargaining Power To Customer

Buyer Strength became one of the factors that influence companies to mecapai success. This is evident from how companies communicate with customers as well. And also the price given in accordance with the purchasing power of customers. XL Axiata customers include individuals, students, office employees, and the company was satisfied with the services provided by the company. PT. XL Axiata has a loyal customer and continues to grow. Customers PT. XL Axiata has high confidence in the services provided by the company. Although it has the trust of customers, PT XL Axiata should keep improving and maintaining the level of customer confidence. To improve and maintain the level of individual customer's confidence in a way that is done by PT XL Axiata like:

a. Provide the best service and as much as possible.

b. Providing a package or program that continues to be updated periodically to provide customer satisfaction.

c. Focus on customers in every decision and action.

d. The best solution oriented.

e. Efficient and effective in providing solutions.

f. Oriented to the quality of the products and services provided.

g. Proactive in action.

h. Innovative and creative in providing solutions.

B. Competition Industry (Rivalry Among Existing Competitor)

At this time many companies are engaged in the same field with PT. XL Axiata namely as a provider of mobile telecommunications services. This sparked intense competition in the mobile telecommunications service provider industry. The competitors today many innovations and developments that can attract close attention the public or customers that can increase competition among companies. Here are competitors who are around company Telkomsel, Indosat is known is two (2) large above PT. XL Axiata in the competition in the field of mobile telecommunications services. Therefore, PT. XL Axiata must constantly innovate and improve service to the customers so as not to lose the competition business.

C. Power of Suppliers (Bargaining Power of Suppliers)

PT. XL Axiata has suppliers from the distributor of packaging, cards, IT Provides, and music labels and items - other items that are needed in the provision of mobile telecommunications services.D. Threat of Substitute Products (Threat of subtitute Product)

Replacement products from PT. XL Axiata such as data services include Social Media, Skype, Yahoo, and others.

E. Threat of New Entrants (Threat of New Entrants)

Newcomers to the field of mobile telecommunications service providers now more commonly found in particular in the area of Jakarta. The presence of new entrants pose a threat to the PT. XL Axiata as an example of companies such as Alcatel lucent newcomer who is a company that came from Paris, France who have started to cooperate with Indosat and Telkomsel in order to develop its business in Asia. With the new competitors in the field of the same will result in the customer has other alternatives to choose the provider they wish to use. Namunapabila PT. XL Axiata remains consistent and thrive in providing products and services, then the customer will keep their loyalty.

Based on the analysis above 5 porter power can be concluded that PT. XL Axiata including strong company and have many competitors in the world of telecommunications service provider industry both in terms of substitute products or competitors of the company and the threat of new entrants company. So PT. XL Axiata need the advantages that need to be enhanced to improve its competitiveness.

A. Power of Customers (Bargaining Power To Customer) Buyer Strength became one of the factors that influence companies to achieve success. This is evident from how companies communicate with customers as well. And also the price given in accordance with the purchasing power of customers. XL Axiata customers include individuals, students, office employees, and the company was satisfied with the services provided by the company. PT. XL Axiata has a loyal customer and continues to grow. Customers PT. XL Axiata has high confidence in the services provided by the company. Although it has the trust of customers, PT XL Axiata should keep improving and maintaining the level of customer confidence. To improve and maintain the level of individual customer's confidence in a way that is done by PT XL Axiata like:

a. Provide the best service and as much as possible.

b. Providing a package or program that continues to be updated periodically to provide customer satisfaction.

c. Focus on customers in every decision and action.

d. The best solution oriented. Efficient and effective in providing solutions.

f. Oriented to the quality of the products and services provided.

g. Proactive in action.

h. Innovative and creative in providing solutions.

B. Competition Industry (Rivalry Among Existing Competitor)

At this time many companies are engaged in the same field with PT. XL Axiata namely as a provider of mobile telecommunications services. This sparked intense competition in the mobile telecommunications service provider industry. The competitors today many innovations and developments that can attract close attention the public or customers that can increase competition among companies. Here are competitors who are around company Telkomsel, Indosat is known is two (2) large above PT. XL Axiata in the competition in the field of mobile telecommunications services. Therefore, PT. XL Axiata must constantly innovate and improve service to the customers so as not to lose the competition business.

C. Power of Suppliers (Bargaining Power of Suppliers)

PT. XL Axiata has suppliers from the distributor of packaging, cards, IT Provides, and music labels and items - other items that are needed in the provision of mobile telecommunications services.D. Threat of Substitute Products (Threat of subtitute Product)

Replacement products from PT. XL Axiata such as data services include Social Media, Skype, Yahoo, and others.

E. Threat of New Entrants (Threat of New Entrants)

Newcomers to the field of mobile telecommunications service providers now more commonly found in particular in the area of Jakarta. The presence of new entrants pose a threat to the PT. XL Axiata as an example of companies such as Alcatel lucent newcomer who is a company that came from Paris, France who have started to cooperate with Indosat and Telkomsel in order to develop its business in Asia. With the new competitors in the field of the same will result in the customer has other alternatives to choose the provider they wish to use. Even if PT. XL Axiata remains consistent and thrive in providing products and services, then the customer will keep their loyalty. Based on the analysis above 5 porter power can be concluded that PT. XL Axiata including strong company and have many competitors in the world of telecommunications service provider industry both in terms of substitute products or competitors of the company and the threat of new entrants company. So PT. XL Axiata need the advantages that need to be enhanced to improve its competitiveness.

Sources :

Dirgantoro, Crown , Manajemen Stratejik, Grasindo, Jakarta 2001

Jay B. Barney, William S. Hesterly, Strategic management and Competitive Advantage, Pearson Prentice hall, New York, 2010

Sources :

http://www.xl.co.id/corporate/en/company/leadership/board-of-directors

http://www.xl.co.id/corporate/en/company/leadership/board-of-commisioners

http://www.xl.co.id

http://thesis.binus.ac.id

CUSTOMERS :

INDIVIDUALS

STUDENTS

COMPANY

EMPLOYEE

EMP

EMPLOY

SUPPLIER:

PACKAGING

CARDS

IT PROVIDES

MUSIC LABELS

PRODUCT SUBSTITUTION :

DATA SERVICES

INDUSTRY COMPETITITON

TELKOMSEL

INDOSAT

SMARTFREN

TRI

NEW COMERS