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

: 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.


BUSINESS ISSUE
Based on data from Badan Pusat Statistik (2022), Indonesia's total exports and imports in 2018 increased from the previous year.The increase in total exports was supported by the activities of the Indonesian.For example, the trade mission which had been carried out in 2018, with the main markets were China, Japan, America, India, and Singapore.Badan Pusat Statistik (2022) recorded Indonesia's exports throughout 2019 at US$ 167.53 billion.This figure is significantly lower than the export performance of the previous year, which reached US$ 180.01 billion.Meanwhile, in 2020 Indonesia's total exports and imports decreased.Indonesia's exports decreased by 2.6% from the previous year due to .Imports experienced a very drastic decline of 17.34%.In addition, the economic downturn caused global and domestic demand to decline.Simultaneously with the decline in Indonesia's total exports and imports, Jahermosa's sales trend also experienced a drastic decline in 2019.However, along with the increasing number of vaccines and economic recovery in several countries, Indonesia's total exports and imports increase drastically in 2021.The export increase is in line with the rising prices of some of Indonesia's mainstay commodities.Unfortunately, the sales trend of Jahermosa has been stagnant from 2019 to 2021.There was no corresponding increase in the trend even though Indonesia's total exports and imports were increasing.The increase of Indonesia's exports and imports, of course, attracts the growth of new information for internal and external analysis of PT Jahermosa.Primary Data.The method to gather this data is using depth-interview with customers and employees of PT Jahermosa.Owners/CEO, Managers, and Employee will be interviewed to understand the about the daily operation and current situation of the freight forwarding business.Meanwhile, five customers of PT Jahermosa will be interviews about the capabilities of PT Jahermosa that are valuable to them.All interview was conducted in a semi-structured manner to create good report while allowing respondents to share in depth insight.Secondary Data.Secondary data can be in the form of documentation, books or official archives.The author's secondary data sources are obtained through internet, books, company's report, and journal.

EXTERNAL ANALYSIS
The external environment of PT Jahermosa comprises factors that influence the potential to achieve sustained competitive advantage.By Scanning, monitoring, and evaluating the external factors, opportunities can be capitalized and threats can be alleviated.The external factors consist of the general environment, industry, and strategic group (Rothaermel, 2021).These factors will be analysed using PESTEL Analysis, Porter's Five Forces, and customer analysis, and competitor analysis.

PESTEL Analysis
The PESTEL Framewoork is a framework that categorizes and analyses an important set of externatl factors (Political, Economic, Socialcultutral, Technological, Environment, and Legal) that might impinge upon a firm.It allows us to scrutinize, observe, and evaluate changes and trends in the firm's macroenvironment (Rothaermel, 2021).

Political.
 Minister of Trade Zulkifli Hasan declared, The G20 Trade, Investment, and Industry Ministerial Meeting (TIIMM), which was held on 22-23 September 2022 in Bali, was successfully conducted and supported the achievement of six priority issues to accelerate global economic recovery and sustainable development goals.By making contracts between countries that are members of the G20, there will be opportunities for imports and exports in the long term. Minister of Agriculture (Mentan) Syahrul Yasin Limpo emphasized that the three-time export movement or hereinafter referred to as Gratieks must be a turning point for all parties in igniting the spirit of Indonesia's agricultural revival.

Economic.
 In 2022, central banks throughout the world have raised interest rates with a degree of coherence not seen in the previous five decades.The very high rise in inflation in developed countries followed by extraordinary monetary policy responses and tight liquidity spurred the so-called capital outflows and volatility in the financial sector.Policymakers may change their attention from cutting consumption to increasing output in order to achieve low inflation rates, currency stability, and quicker development.Meanwhile, this condition can reduce Indonesia's export rate because commodity prices will weaken due to falling demand. Trucking companies in Indonesia increased tariffs by 25% due to the increase in diesel prices.The Indonesian Logistics and Forwarders Association (ALFI) has confirmed that it will adjust the tariff for logistics services where the increase is 20%.

Social.
Freight forwarding sector requires understanding of work culture variations such as language barriers and communication process.PT Jahermosa primarily imports and exports to Singapore, Malaysia, Vietnam, China, and Korea.The most common language used in communication is English.Customers from China, on the other hand, do not all speak English.Typically, they will utilize translator or message translator.Thus, written communication is required in this language difference to minimize miscommunication.In addition, differences in working hours can also cause problems because Indonesia is one hour behind all of that countries.

Technology.
 Director of Information Empowerment, Directorate General of Information Applications at the Ministry of Communications and Informatics, Septriana Tangkary stated that the growth in the value of electronic commerce (e-commerce) in Indonesia reached 78 percent, the highest in the world.Online purchasing is common in Indonesia, and this practice has grown in popularity as the COVID-19 epidemic has spread.The value of market is expected to rise at a compound annual growth rate (CAGR) of 19.2% between 2020 and 2024, to reach IDR707.6 trillion (US$51.0bn) in 2024.(Globaldata, 2021)  Technological developments in the freight forwarding business process have reached the application development stage.In this application, customers can quote prices instantly and monitor their shipments directly from their mobile phone.In addition, communication with customer service can be done directly with the chat feature.

Ecology.
The freight forwarding business accounts for eight to ten percent of global carbon emissions, making it one of the most significant carbon polluters on the planet.Climate impacts, in turn, have secondary consequences ranging from infrastructure damage to microscale issues such as surety bond claims.The logistics industry bears high level of responsibility in global warming because their contribution in global CO2 emissions.Therefore, several shipping lines have imposed Environmental Fuel Fee (EFF).Of course, this additional cost increases the price of freight ships.

Law.
This insurance provides compensation for damage or loss of goods in shipping by land, sea, or air.This insurance is commonly referred to as freight insurance, marine cargo insurance, and shipping insurance.With this insurance, the risk for cargo owners when the cargo is being transported domestically in Indonesia and internationally can be reduced.The types of insurance are distinguished based on the type of transportation by water/sea, land, and air.

Porter Five Forces Threat of new entrants (High).
The freight forwarding industry relies on customer switching costs in dealing with new entrants in the industry.High customer switching costs because it takes work for customers to trust a forwarding.There are many cases where the forwarding agent is not responsible for releasing the goods because the goods turned out to be problematic due to errors or lack of supporting documents.However, it will undoubtedly be easy for newcomers to enter this business when viewed in terms of product differentiation, capital requirements, access to distribution channels, and legal requirements.

Threat of subtitutes services (Low).
The freight forwarding industry using service rails between countries is still minimal.In 2021, the volume of transported freight on Indonesia's railway system amounted to approximately 50.04 million metric tons.Customers prefer to use other modes of transportation because the infrastructure of the railway is not integrated from the port to the customer's warehouse.

Bargaining power of supplier (Low).
The existence of suppliers or vendors rather than freight forwarding nowadays is many.With the times, access to communicate with these suppliers is easier through the website.The prices offered between suppliers are the same, but the quality can be different.If the workload is too large, the suppliers tend to finish the work late.Therefore, it is necessary to control each supplier so that the work can be completed on time.
Bargaining power of buyer (High).Freight forwarding companies usually sell to B2B customers.With the increasing e-commerce market in Indonesia, buying goods from abroad, primarily China, requires freight forwarders who can take care of their goods.Customers tend to switch to another freight forwarding if the price offered is not reasonable.Usually, the type of shipment that increases the ability to substitute is the type of shipment, such as general cargo, dangerous cargo, or perishable cargo.

Rivalry of competitors (Medium).
Freight forwarding companies vary from small, medium, and large companies.This is influenced by the capital needed to work on a project.However, usually, large companies will share their projects with small companies because of this highly developed industry.Usually, freight forwarding companies can cooperate in certain cases.

Customer Analysis
Product.One of the service lines that take more work is Re-exports.Re-export is sending back goods imported into Indonesia to the country of origin or a country approved by customs.The obstacle in the re-export process is a complicated bureaucratic process for customs and shipping because the services of the two parties need to be synchronized.The re-export process will take months if the customer does not use unreliable freight forwarding.Meanwhile, the rating imposed for storage and detention is per day.In addition, customers also need dangerous goods services.
Place.Branch offices can make it easier for customers to collect original documents followed up as evidence in the customs clearance process at the port or airport.Also, the online presence of freight forwarding companies will gain their trust.The official website shall use the updated design to look more attractive and needs to be updated about the company's experience on the website.
Promotion.However, the customer considered that this good service was different from a good promotion by PT Jahermosa.Brand awareness of PT Jahermosa has yet to be heard well by the outside market.Lack of promotion is undoubtedly a further analysis for PT Jahermosa to improve its business strategy.
Price.The price given according to the customer is competitive and can compete with other agents.However, the price for problematic and difficult-to-work items is definitely higher.Of course, the price given is in accordance with the service and professionalism of freight forwarding companies.
Process.Customers expect a call center or red desk.Also, they hope the workers' English skills can be improved.Fluent English can speed up the work process so that it does not depend on the manager's level in responding to important emails or messages.
Physical Evidence.Documents are essential evidence in the freight forwarding industry so that the customs clearance process can run smoothly.Therefore, document storage must be carried out in hardcopy and softcopy People.Customers needs freight forwarder who is friendly and polite in interacting through text and calls.In addition, freight forwarding should be patient and thorough in checking documents, even though customers often make mistakes.Moreover, customers need support in the field or online for 24 hours a day.

4.4
Competitor Analysis Analysis of three competitors who played in freight forwarding industry with the same target market as PT Jahermosa by using competitor analysis in Table 1.Three companies include PT Prima International Cargo, PT Andhika Maju Mandiri and Dunex Logistic Solution.
Product/Service.Competitors have the same service line in term of air freight, sea freight, trucking, warehouse, custom clearance, and heavy equipment.However, competitors also have several added service lines such cold storage, packaging and perishable goods.
Place.Competitor have the headquarters near the Tanjung Priok Port and branches in several big cities in Indonesia, such as Surabaya, Semarang, Bali, Pontianak, Natuna, Palembang, Jambi, Batam, and Kendal.

VRIO Analysis.
To assess resources and whether they support a firm's competitive advantage, they must meet the VRIO criteria: Valuable, Rare, Imitation Costly, and Organized to capture value, which is called the VRIO framework (Rothaermel, 2021).The VRIO analysis result of PT Jahermosa can be seen in the Table 3.

Economic Logic
• Development of effective management system.It is necessary to do a good leveling of the workload so that it does not pile up on one person with a large workload but a small number of human resources.PT Jahermosa should divide everyone into different posts.One example is in the logistics department, company needs to divide into document checking posts, field inspections, delivery of goods, and archiving of important documents.Thus, the work is done repetitively thereby reducing errors in each post.
As mentioned in the TOWS Matrix the best alternative strategy is to improve organization structure (WO.2).To be able to cover all of the proposed strategies above, PT Jahermosa needs to make improvements to the organizational structure by adding several departments as shown in Figure 2. By using the Value proposition canvas, the proposed business strategy can be clarified whether it is in accordance with customer needs.Based on Figure 3, the pains and gains from the customer in shipping their product can be relieved by the proposed strategy.

Promotion.
Competitors use website, email, Facebook, LinkedIn, and Instagram.The price between competitors using unit price and relatively the same.Process.Competitors use advance technology such as Integrated Application System and Live Tracking for their process in custom clearance.The technology help customers to input the data easily.Also, competitor already apply ISO 9001:2008 in the management system.Physical Evidence.Competitors use advance technology such as Vehicle Management System (Apps), Live Tracking, and E-Portal.People.Competitors have trained employees.Also, they make the well-organized structure for their employees.For example, they have Marketing Manager, Air Freight Manager, Branch Coordinator, Branch Manager, Procurement Manager, and Legal & GAF.

•
Fast custom and delivery process.By accelerating expenditure and delivery of goods, the company can help clients and cash flow from PT Jahermosa.Payment is made when the goods arrive at the client's warehouse.Therefore, the faster the goods come out, the faster the company gets paid.Staging•Development of warehouse facilities.With a warehouse in Tanjung Priok, companies can develop their business and added their revenue.Warehouse facilities that are most in demand by customers as temporary storage or assembly of heavy equipment before being delivered to their destination.•Construction of operational office near tanjung priok.Tanjung Priok is the main port for customer's PT Jahermosa in sending and receiving goods.With this operational office, it is also easier for customers to send original documents.

Figure 2 .
Figure 2. Improvement of Organization Structure in P T Jahermosa

Table 1 .
Competitor Analysis using Marketing Mix 7P

2581-8341 Volume 06 Issue 01 January 2023 DOI: 10.47191/ijcsrr/V6-i1-85, Impact Factor: 5.995 IJCSRR @ 2023 www.ijcsrr.org 782
Experience in handling Re-export  Specialist in handling steel structure  Specialist in handling heavy equipment  Specialist in temporary import  Specialist in handling perishable goods  API-P certification Relationship  Strong relationship with the stakeholders  Partners with big forwarders around the world, especially China, Singapore, and Malaysia * Corresponding Author: Sebayang Lovanda C. A. Volume 06 Issue 01 January 2023 Available at: ijcsrr.orgPage No. 777-789

Table 3 .
VRIO Analysis of PT Jahermosa Resources

V R Figure 1. Value Chain Analysis of PT Jahermosa 5.4 Business Model Canvas Table 4. Business Modal Canvas of PT Jahermosa Key Partners Key Activities Value Propositions Customer Relationship
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Table 5 .
SWOT Analysis of PT Jahermosa