LEN CORPORATE STRATEGY IN ENTERING NEW BUSINESS LINE “ELECTRONIC-CONSUMER GOODS”: Resource Base Approach

• Main Author: Wisnubroto
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/1691
• Institution: Institut Teknologi Bandung

As one Operating Company of BPIS, a State Owned Strategic industries Holding Company, PT.LEN – Industries is an Electronic Engineering and Manufacrturing Company. It\'s Company mission, as typically a kind of Indonesian State owned enterprise, are twofolds : <br /> 1. Profit Making to maximize shareholder wealth. <br /> 2. Mastering the Techonology in order, to support the national capability in building its Industrial - infrastructures and to have self reliance in National defence. <br /> Converted from - former R & D Institution – dealing with electronic, under LIPI - National Science and Technology Institution , PT. LEN was established as a Company / Business entitiy by 1990. As a company with that R & D back ground, PT. LEN developed various \"Professional Electronic products \" based on its owned engineering and design , such as Power electronic, Electronic Control system, Transmission and broadcasting system, Military Electronic and Electronic Component . Some dominant characterictic of this Company, which built its image among the Industries community, are : <br /> • PT.LEN is involved in the profesional electronic business area <br /> • It has quiet ample engineering and design capability in Microelectronic, good experience in product development and, it has Engineering - laboratory and production facilities , to launch newly developed products to the market. <br /> Anyhow, all those facilities are considered \"relatively small \" in global business perpective. <br /> • Its Customers , for the professional ellectronic products, are mostly Government institutions, such as the Ministery of Transport and Communication, the former Ministery of Information (for the Government Radio and TV Broadcasting Agency), the National Railways company etc, which its funding and budgetary system are typically beurocratical type – based on Annual Government budget. To be more Commercial company (which does not depend on government – single market) , on 1998 PT. LEN launched a completely different — new products , ie , \"the Electronic — Consumer goods\", which cover several \"Solar - based lighting system , such as Solar House lighting system , Outdoor Solar Lighting system, Fishing Solar based lighting system , Camp-Solar lighting system,etc. Beside , PT.LEN has also launched several \" Solar / electrical – powered vehicle\" such as Golf Cart , and electrical bike. Observing this sudden change , from one Hi – technology proffesional goods industries , into a very simple / low technology consumer goods business area , the writter was intrigued to make a small research in this Company, to try to understand - wether this business strategic decission, has been done after considering comprehensivelly all consequences might come from these two completely different business nature. The market structures, market customer behavior, technology competencies, marketing network , marketing and sales management system of these two business, are completely different one to each other. Each require different resources and competencies . In this paper, the writter made short study and discussions, using the \"resource based approach – Corporate strategy assessement\" in PT. LEN in Bandung. From this Resource based approach assessement, the writter has the hope to be able to identify key competencies, key resources tangible or intangible assets, Skills and organizational capabilites, required to be mastered and owned by the company, in order to win the competiton in that industry. In this paper, some issues on Business / Competition , resource requirements and its \"Competition — resource startegic fit requirements\" will be intensivelly discussed in order to see the degree of Competitive advantages achieved by the company. And there will be some small discussion on Organization – structure – systems and processes, too, so far as it relates to the required strategic – fitness with the business and resource conditions. As Collis and Montgomery said, with these overall strategic fits among Business – resource – Structure, system and processes of the the company, they will lead the company , to achieve Corporate advantage, to be a strong – solid competitive business organization. From this study , the writter hope that it could become a good feed back and contribution to the management of PT. LEN for its continues improvements.