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Thursday, September 19, 2024

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Elon Musk's Intention of Providing the Starlink System in Ukraine

Business

2023/10/23

Rectangle 106

1

23 October 2022

Starlink is a satellite constellation internet service created by SpaceX, a spacecraft engineering company founded by Elon Musk. It enables internet connection in rural areas where the internet is limited due to geographical isolation. On February 27, 2022, Elon Musk began providing Starlink stations in Ukraine for the ones suffering from ruthless attacks by the Russian forces. The Starlink stations were supported to restore Ukraine's disrupted internet services. In spite of the impression that Elon Musk is only trying to help Ukraine overcome its military crisis with technology, Musk actually intends to capitalize on the marketing effects of his prototype and test it out.

When Musk decided to provide the Starlink system without charging the Ukrainian government, the Starlink system was still in the finalization process. Only after testing the various functions in Starlink, Musk could commercialize the company's product… However, for the prototype to be tested effectively, a real-world situation is the only optimal condition–which is a challenge in itself to find an appropriate real-world situation. Luckily, for Elon Musk, there was an ideal scenario for the Starlink system to be activated for its final product: the Russo-Ukrainian War. On February 25, 2022, Ukraine suffered from a massive cyberattack from Russia that caused an Internet blackout in cities such as Kharkiv and Mariupol. This disruption blocked military communications, which are essential at all times during a war. Spotting this issue, Elon Musk responded to the Ukrainian government's tweet to support their internet services. From this situation, Elon Musk tested Starlink stations globally.

Besides trying out his prototype, Elon Musk gave support in order to reactivate Ukraine's internet system. This helped to solidify the reputation of SpaceX and himself as problem-solvers for communities in need of help. After the official statement Musk made through his tweet on deploying Starlink stations in Ukraine, residents and government officials in Ukraine praised him as a hero. As he anticipated, Musk gained a positive reputation among not only Ukrainians but also the public noticed his benevolence through the media. It is natural that when the CEO of a company receives positive attention, the company gains a similar reputation at the same time. This is the case of Elon Musk, Tesla, and SpaceX. Although there isn't a financial statement that lets us know the financial benefit SpaceX gained from this incident, there is a clear long-term benefit they achieved globally– resolving a national problem. Those benefits include building a positive brand reputation and receiving attention from the public as a growing corporation.

Elon Musk's participation to help restore the internet system in Ukraine during the Russo-Ukrainian War has several intentions, including the purpose of helping the Ukrainian society to overcome the crisis they are going through. However, there are several other reasons that caused Elon Musk to deploy his products in Ukraine. These results include testing out his unfinalized product in a real-world situation before it actually begins to commercialize, as well as the marketing effects it brings by building a positive reputation for Musk and his companies.

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