Proposed Business Strategy for Company X

: 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.


INTRODUCTION
The competitive landscape of the economic business world has been significantly influenced by technological advancements in recent decades. In response to these changes, companies have adopted strategies such as automating their business operations, collecting industry-specific information, and leveraging it to gain a competitive edge [1]. Indonesia is experiencing significant advancements in various technology trends. Factors such as the rapid growth of information technology, urbanization, and consumerism in urban areas aid in the advancement of technology within the country. The "Making Indonesia 4.0" initiative aims to improve the economic cycle and position Indonesia as one of the top 10 global economies by 2030. The successful implementation of Industry 4.0 relies on crucial factors like the availability of digital infrastructure, including IoT, artificial intelligence, augmented reality, virtual reality, and other technologies [2]. These advancements play a vital role in driving Indonesia's journey towards Industry 4.0.
Company X, a technology company based in Indonesia, dedicated to delivering innovative solutions for businesses through a technological approach. As market interest continues to expand and Indonesia's technology industry experiences rapid growth, competition among IT vendors intensifies. However, company X reported their operating revenue as declined in 2021, with the net loss of 903 billion rupiahs for the year 2021. Company X suffered loss in income from 2020 to 2021 with approximately 6% loss, and from 2021 to 2022 with approximately 10% loss. Within these two years, the world suffered from Covid-19 pandemic that has brought most business sector to fall. However, compared to many other industries, the pandemic gave IT industry many opportunities with massive market expansion. By 2025, it is anticipated that IT companies in Indonesia will experience a substantial rise in digital innovation across multiple sectors, resulting in a potential annual economic impact of USD 150 billion [3]. Given the abundant opportunities available, it is crucial for Company X to reevaluate its business strategies and consider new approaches to ensure continuous growth and sustainability.

LITERATURE REVIEW
The literature review highlights several key factors to consider in developing a successful business strategy for Tech Company. This research emphasizes the importance of differentiation and innovation as crucial elements for gaining a competitive advantage in the fast-paced tech industry. Porter's Differentiation Strategy seeks to create a competitive edge by offering unique and innovative product or service, that makes the company can stand out from competitor and attract customers. This research emphasis two hierarchies of strategy, the first is business strategy that serves as competition strategy. Wandebori (2019) defined business strategy as a comprehensive commitment to utilize and improve resources into capabilities that form the basis for superior competence to gain competitive advantage with one product market [4]. Business strategy is developed with a customer-centric approach, focusing on achieving leadership and differentiation through product and pricing strategies [5]. The second is functional strategy that serves as more technical strategy in the form of marketing, operations, HR, finance, and technology [4]. Functional strategies serve two separately or combined with one another as needed. By aligning the company's resources, capabilities, and market opportunities, companies can effectively determine whether a cost leadership or differentiation strategy best suits their circumstances. This matching process ensures that businesses can leverage their strengths and position themselves advantageously in the market, ultimately driving sustainable growth and competitive advantage.

METHODOLOGY
This research is a qualitative research, which is expressed through the use of language that includes emerging questions and procedures, with generally acquired data in participant's environment [19]. The study utilized cross-sectional data collection to expedite the research process given its limited duration. This approach involves gathering data from multiple individuals at a single point in time and provides insights into the prevalence of outcomes or exposure [28]. This research gathered relevant data from Company X, encompassing both primary and secondary sources. Primary data was obtained through surveys, observations, and personal interviews conducted with Company X to gain insights into their current business situation. According to Burges (1984) and Lofland & Lofland (1995), in-depth interviews are described as a conversational form [29] [30]. In-depth interviewing is a qualitative research approach that involves conducting extensive one-on-one interviews with a small number of participants to explore their perspectives on a specific concept, program, or situation [31]. In-depth interviews were conducted using open-ended questions to gather comprehensive information. Secondary data was collected from various existing resources such as publications, journals, reports, and other managerial information pertaining to Company X and the IT industry. The data collected from Company X helped identify the business issue, which was further analyzed through consumer analysis and environmental analysis to understand the internal and external factors impacting the problem. Strategies were formulated using analytical tools like the TOWS matrix, VRIO framework, and integrated analysis approach.

A. Consumer Analysis
Kotler's consumer analysis framework is utilized to gain a deeper understanding of a business's target customers, enabling the development of effective marketing strategies. This involves employing the segmentation, targeting, and positioning (STP) approach to analyze and define specific customer segments for better market positioning.

II. Industry Analysis (Porter's 5 Forcer)
The Porter's Five Forces framework is based on the idea that organizations can shape their strategies and navigate the competitive landscape by comprehending the opportunities and threats it presents. This framework proves valuable in helping companies evaluate industry performance, anticipate the effects of trends on competition, identify favorable industries for competition, and establish effective positioning strategies for achieving success [7]. Table 2. Industry Analysis

III. Competitor Analysis
Competitor analysis is the process of identifying competitors in the same industry. As a result, direct competitors to be investing ted are company A and company B. a) Company A Founded in 2018, Company A operates in Indonesia, specializing in the provision of location and business intelligence software. Their expertise lies in combining geospatial data with machine learning for predictive analysis. With an extensive database consisting of over 6 million Points of Interest (POI) in Indonesia, 1100 thematic data, and information from 138 million mobile devices, the company collaborates with government entities like the Ministry of Tourism and Creative Economy and Jasa Raharja to offer location intelligence using spatial data. Their target markets encompass various sectors including FnB, retail, supply chain, agriculture, environment, and government, enabling them to enhance business decision-making by integrating client data with their own. Key strengths include a strong brand identity, a reputable company image, a robust managerial strategy, and a readiness for rapid expansion. The company has also formed numerous partnerships and collaborations with both government and private entities, setting it apart as a geospatial company with the largest data repository. However, a notable weakness is the potential reliance on a single product or service. b) Company B Established in 2018, Company B operates as an IT services and consulting firm. Their offerings include a range of accessible or open-source products that seamlessly integrate to facilitate the transfer and processing of geospatial data. With over 2,000 users, including more than 900 active users, the majority of their user base consists of licensed organizations. Company B primarily targets diverse sectors such as industry, agriculture, and mining, aiming to optimize data processing and analysis to support decision-making processes. Notable strengths include a well-structured human resource management system. However, being a relatively new company, Company B faces challenges in terms of low brand recognition and securing investment.

C. Internal Analysis I. Resources Analysis
The Resource-Based View approach examines and interprets an organization's internal resources, highlighting their importance in formulating strategies that lead to sustainable competitive advantage [8]. This method stated that company sustainable competitive advantage is valuable, rare, cannot be imitated, and no substitute.