Scenario Planning Development in Facing Future Challenge for Power Rental Industry (Case Study: SM Company)

The diesel power rental industry is currently in an energy transition period. Policy changes in reducing the use of non-renewable fuels are factors that can reduce customer demand. Several policies, such as the Paris agreement, followed by a general plan for electricity supply, then a general plan for national energy that focuses on increasing the use of renewable energy encourages the shift from fossil fuels to renewable sources. These factors will affect the electricity rental industry which still uses fossil fuels.

Scenario planning is chosen to provide possible scenarios that may occur in the future by carrying out an analysis of implications & options. This scenario can provide an initial danger signal to be used as an indicator of movement in an industry which will help companies to act and choose the best strategy going forward. Scenario planning is used as a tool for strategic thinking that can be integrated into corporate strategic planning.

The semi-structural interview qualitative method was used to collect both primary and secondary data. Supporting analysis of both external factors such as Pestle & Porters Generic Strategies as well as internal resource-competencies was carried out to determine what factors affect uncertainty in the industry, in overcoming future uncertainties scenario planning carried out in this study. The strategic recommendations that were presented have the potential to assist in the future alignment of the company’s strategy.