Articles

Proposed Business Strategy Development (Case: Paradigma Creatives)

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The Fourth Industrial Revolution also calls for a new way of formulating policy and regulation. IT will massively expand consumer choice, lower costs and raise quality, all of which will be equally hard to value. The Creative Economy is not unaffected by the 4th Industrial Revolution. Several aspects from the revolution may pose an existential challenge to some segments of creative activities. Indonesia is one of the developing countries that is vulnerable to be impacted by the change occurring in the industry. Creative economy initiated by local citizens and government in Indonesia aimed to increase human-well being. They present new strategies to enlarge income, create new fields of work, and also increase added value for the people. Creative industries has been developed in Indonesia since 2009 marked by the Presidential Instruction number 6 of 2009. Based on 2013’s Indonesian Statistic Board, the industry has grown by 5,76% and contributed to Indonesia’s gross domestic product (GDP) by 7% or equals to $US 46,930 billion. Paradigma Creative themselves didn’t really have any competitive advantage among the rivalry in the industry. Value offered to the market is roughly similar with the point of what competitor has offered. Without the uniqueness and the differentiation that applied to the company, Paradigma would lose their selling point to be received in the customer top of mind. Using the internal and external analysis, this study proposes the assessment of the current company condition and then constructs the best possible solution by converting it into TOWS Matrix.

The Implications of Lean Thinking in Digital Transformation Projects

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The Internet of Things, Data Science, 3D printing, Artificial Intelligence and Machine Learning are some elements on the agenda related to business modernization. These and other digital technologies promote significant changes in the structures of organizations, from strategic planning to the factory floor. However, this process of Digital Transformation is not only materialized in the implementation of digital technologies in the production chain, but is based on the capacity of these enabled technologies to generate new value propositions. This article proposes a discussion about the implications of Lean Thinking in the implementation of Digital Transformation projects. For this, the study analyzed 21 international academic works, from the year 2018, based on the Web of Science and Scopus repositories. The repositories were selected because they are comprehensive and offer intelligent search tools. After a systematic analysis of the documents, a discussion arose about the central elements capable of expanding the understanding of the components of Lean Thinking and its relationship with Digital Transformation projects.

Proposed Business Strategies for Business Development in Indonesia’s Interior Design Industry (Case: Hepta Desain)

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This research aims to develop a proposed business strategy for Hepta Desain, an architectural consultancy firm in Indonesia, to capitalize on the interior design division and seize the opportunity for increased profitability. The study explores the internal and external factors influencing Hepta Desain in the interior design industry and identifies strengths, weaknesses, opportunities, and threats through a comprehensive SWOT analysis. The application of the TOWS Matrix and IE Matrix aids in formulating effective business strategies. Analysis reveals that Hepta Desain possesses strong financial capacity, an established organizational structure, valuable physical assets, advanced technological infrastructure, intangible resources, a positive reputation, and relevant certifications. Leveraging these strengths, the company can pursue market penetration and product development strategies to capitalize on existing industry opportunities. However, certain weaknesses and threats, such as limited transportation resources, technological presence, physical market presence, and service activities, require attention. The recommendations include strengthening marketing and PR activities, investing in technology and innovation, expanding physical presence, and developing strategic partnerships to mitigate risks and maximize competitive advantage. By implementing these strategies, Hepta Desain can position itself as a proactive and distinct player in the interior design industry, thereby enhancing its profitability and market standing.

Proposed Business Strategy for Enhancing the Market Competitiveness of Argo Parahyangan Facing the Jakarta – Bandung High-Speed Train

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This research analyzes the competition between the Argo Parahyangan train and the Jakarta-Bandung High-Speed Train (HST) on the Jakarta-Bandung route. The objective is to make an informed decision about the continuation of the Argo Parahyangan train, considering passenger preferences. Factors such as accessibility, comfort, travel cost, safety, and travel time influence passengers’ mode of transport choice. The study identifies travel cost and time as primary considerations for passengers. Proposed strategies include optimizing schedules, enhancing customer experience, promoting scenic views, utilizing social media, offering promotions, and forming partnerships. Implementing these strategies would enhance the market competitiveness of the Argo Parahyangan train, operated by the Indonesian Railway Service Company, in response to the Jakarta-Bandung HST operations.

Proposed Business Strategy for Company X

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In 2019, Covid outbreak affect business situation that leads to decline due to lockdown and economic fall. However, Covid-19 pandemic create opportunity for IT sector to grow. Reflect the situation, in 2020 to 2021, company X suffered loss in income as of minus 903,167,461 rupiahs. The company suffer 5.33% and 9.16% revenue decrease in 2021 and 2022, and target revenue was not achieved. This research is conducted to assess internal and external factors that affect company X profitability and formulate strategy based on the problem occurred. This research is using qualitative approach with data collected through literature review, observation, and in-depth interviews with company X.

Financial Feasibility Study on Antam Pongkor Low-Grade Gold Ore Mine After Implementing Business-Level Strategy

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The Pongkor Gold mine is under Production Operation Permit until 2031 while existing feasibility study stated that Pongkor gold Mine only have economical number until 2025 with ore volume in 1.5 million wmt and ore grades above 4 gpt. Pongkor Gold Mine has resources in low-grade gold ore (below 4 gpt) in 1.9 million wmt with the grades is 3.61 gpt. Having a gap period between mining permits (until 2031) and the latest feasibility study (until 2025) and abundant resources in low-grade gold ore, provides research opportunities to finding how to formulate business strategy level for Pongkor Gold Mine in order to maximize gap period by processing low-grade gold ore. This study started with business situation analysis, with VRIO and Internal Factor Evaluation (IFE) Matrix are conducted for internal analysis, while PESTLE (Political, Economic, Sociocultural, Technological, Legal, and Ecological) analysis, Porter’s Five Forces framework and External Factor Evaluation (EFE) matrix are conducted as external environment analysis. The result shown Pongkor Gold Mine in region V in internal-external (IE) matrix, the region indicated that hold and maintain strategies are suitable for Pongkor Gold Mine. Study continued with Porter generic competitive framework to define the strategy that most suitable with Pongkor Gold Mine condition. The result shown cost leadership strategy is the most suitable strategy with the detailed strategy are (i) implement a cost reduction program every year, (ii) substitute retired organic workers (permanent Employee) with outsourced or contracted workers, (iii) limiting investment only to things that have a direct impact on revenue and (iv) long-term contract in heavy equipment. The impact of these strategies will calculate in financial feasibility study. Financial feasibility study uses financial criteria of Net Present Value (NPV), Internal rate of return (IRR), and payback period (PBP). The results shown NPV in 25.33 million US$, IRR in 52.2% and payback period in 21 months, these number indicated the Pongkor project extension is feasible. This study also intended to determine the most affecting variable to the NPV by conducting sensitivity analysis. The results shown the extension project is feasible as long as the gold price not declined more than 18.4% from the base, production cost (COGS) not increased more than 22% and the productivity not decreased more than 16.94% from the base.

Proposed Business Strategy for New Healthcare Innovation of Electro-Capacitive Body Stimulation (ECBS) Technology

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One of the greatest healthcare challenges in Indonesia is providing an adequate environment and healthcare infrastructure that ensures that people obtain the best treatment that conforms to their expectations, preferences, and needs. Therefore, healthcare technology players have a crucial role in overcoming this challenge and creating a better solution to the system. Electro Capacitive Body Stimulation (ECBS) is a technology that utilizes electric pulses to stimulate the body’s muscles and organs to optimize waste removal and nutrient transport process. As a result, the body will be conducive to physical well-being. For the elderly, who start to experience slowing down in physical ability and degeneration of organ functions, this technology is beneficial to maintain their health condition and prevent future chronic disease. However, the market performance is not live up to the fineness of this technology, even with all its benefits and technological advancement. As a matter of fact, sales have been disappointing by the year since the product is launched to the public. A number of factors contributed to this unsatisfactory sale encompassing internal and external conditions of the company. Through the analysis of internal and external environments as well as primary and secondary data, research is conducted to identify the contributing factors to the unsatisfactory sales and potential value of the technology. Based on the analysis and findings, a SWOT analysis that defines the unsatisfactory business performance factors and potential technology value and the TOWS matrix that bases the business strategy can be described. It includes the diamond model, STP and 7PS marketing, and business model canvas as the proposed solution for the business.

Business Strategy Proposal for Solar Energy EPC Company

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Catur Elang Energi (CEE), as one of the business diversifications of PT. Catur Elang Perkasa was established in 2020 to support Indonesian government to increase the new and renewable energy contribution in Indonesia by providing EPC (Engineering, Procurement, Construction) service for roof top solar power plant. In 2022, revenue generated from their operations is not good enough to achieve the target given by management. This research conducted to know the external and internal factor and propose strategy to improve CEE performance. This study further analyzes how the company runs its business from an external and internal perspective. This study uses external analysis such as PESTEL analysis, Porter’s five forces, and competitor analysis. Moreover, there are also internal analysis such as Segmenting, Targeting Positioning (STP) analysis, Marketing Mix. Then a further analysis was conducted by using a SWOT analysis to determine the strengths, weaknesses, opportunities, and threats of Catur Elang Energi business. Business Model Canvas used to define and communicate Catur Elang Energi business and TOWS Matrix will help Catur Elang’s develop its business and sales. the recommendation given include product development for solar energy related product, promotional campaign, developing agent network, and partnership with financial institution. Strategy implementation in the form of Gantt chart also made based on recommendation that can be implemented by PT. Catur Elang Perkasa.

Proposed Business Strategy for International Freight Forwarding Company (Case: PT Jahermosa)

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PT Jahermosa is an international freight forwarding company established in 2012. This company has experience handling several types of goods with various services and modes of transportation. The services provided include export-import goods delivery using sea, air, and land modes. Due to COVID-19, the company’s sales performance has decreased from 2019 to 2021. However, according to data from the Central Bureau of Statistics, Indonesia’s total exports and imports from 2020 to 2021 have experienced a drastic increase. This gap indicates an increase in the market for goods delivery services to and from Indonesia but did not accompany PT Jahermosa’s ability to absorb the market. Therefore, this study aims to provide strategic business proposals for PT Jahermosa in the freight forwarding industry to improve the company’s sales performance.

This research is qualitative research using primary data and secondary data. Primary data was obtained through interviews with several customers and management participants. While secondary data is obtained through company financial reports, websites, journals, and articles. First, an analysis was carried out on the external and internal conditions of PT Jahermosa’s freight forwarding business. External analysis was conducted using the PESTEL Framework, Porter’s Five Forces Model, Customer Analysis, and Competitor Analysis. Meanwhile, internal analysis was carried out using the Resource Based View Model, VRIO Analysis, Porter Value Chain Analysis. After that, the internal and external analysis will be put into the Business Model Canvas. Then, SWOT analysis is used to evaluate the strengths, weaknesses, opportunities, and threats to assess the condition of PT Jahermosa using the data from external and internal analysis. Evaluation of these four factors forms the basis for formulating strategic alternatives using the TOWS Matrix. Finally, root cause analysis is carried out to find the real cause of the problems encountered using Problem Tree Analysis. Based on the results of this research, the strategy is formulated using the Diamond Strategy Model by considering four factors: vehicles, arenas, differentiators, speed, and economic logic. Value proposition canvas is used to support the proposed strategy.

The limitation of this research is that financial reports need to be explained in detail to keep company documents secret. In addition, this research only covers PT Jahermosa as a freight forwarding and logistics service company. Further investigation can be made based on this research in the supply chain management, human resource management, and marketing strategy.

Proposed Business Strategy to Increase Profitability in Food & Beverage Industry (Case Study: Pt Ganesha Abaditama)

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Indonesia’s retail industry is one of the most promising due to its large population and rising purchasing power from middle-class individuals and millennials with increased spending habits. Food and beverages are part of Indonesia’s retail industry. Ganesha, a manufacturer, and supplier of packaged spices has seen sales decline in the last two years. Outperforming supermarket competitors to increase sales requires a new business strategy to gain competitive advantages. This study uses the AFI framework to design a new business strategy. Porter’s Five Forces, customer, and consumer analysis are used for external business analysis. Resource-based view analysis, core competencies gap analysis, and VRIO analysis are used to analyze the internal business environment. Interviews, questionnaires, and observation provided primary data. Websites, books, articles, and journals provided secondary data. The two data sets are combined for the SWOT analysis, and the TWOS matrix is used to develop strategies. Results show that underpricing rivals and increasing product value will increase market share. Innovating the supply chain, production, and technology helps lower selling prices. Innovating existing products, packaging, and variations helps add product value. However, product innovation requires more market research to determine consumer interest.