BUSINESS REPOSITIONING OF PT. INDUSTRI MINERAL INDONESIA TO GAIN PROFITABILITY

• Main Author: ARDIANSYAH PUTRA (NIM : 29110086) Pembimbing : Moh. Toha, Dr. Ir, EKO
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18378
• Institution: Institut Teknologi Bandung

Kaolin as one of the most important raw material can be found in various places in Indonesia. Global demand for kaolin is expected to increase steadily in line with the needs of kaolin by various industries such as ceramics, toothpaste, paint, cement, cosmetics, pharmaceuticals, and many more. As in Indonesia, kaolin production can not fulfill the demand of various industries. It can be seen from the amount of kaolin production from 2004 to 2008 is only around 15 thousand tons, whereas the potential of kaolin in Indonesia achieve the approximately 66,21 million tonnes comprising 12,95 million tonnes of proven reserves, 26,57 million tons show reserves, and 26,70 million tons of inferred reserves. PT. Industri Mineral Indonesia (PT. IMI) as one of the largest kaolin producer in Indonesia is in the Bangka-Belitung, the main area of kaolin mining in Indonesia. <br /> <br /> <br /> PT. IMI business performance is good in terms of market sales. But a good performance is not followed by good financial condition as well, where the cost of production is very high and very dependent on diesel fuel and also kaolin production has not been able to reach normal capacity. With the ever-growing industry conditions will make the industry more attractive and will continue to change in the market, consumers, and especially competitors. <br /> <br /> <br /> v <br /> <br /> <br /> This condition makes the PT. IMI need to think about business strategy in order to maintain its market position and to seize the opportunity of the growth of the industry. <br /> <br /> <br /> The focus of this thesis is to find solutions that can help reposition PT. IMI to improve performance in all its scope so that it can handle changes and industry conditions, and take advantage of existing opportunities. This thesis uses a qualitative approach. qualitative approach, in the form of in-depth interviews and brainstorming with directors and management of PT. IMI and its customers to obtain primary data, was chosen because it has the advantage of a more flexible, taking into account the patterns of interconnected between different variables, and done in a holistic or comprehensive in analyzing a problem. <br /> <br /> <br /> Chapter business exploration will result in analysis and strategy for PT. IMI. The first step is to do an internal and external analysis of the company. Internal analysis will be conducted on corporate structure, corporate resources, as well as using STP Analysis and VRIO Framework Analysis. External analysis is done by using PEST Analysis and Porter’s Five Forces. From the results of this analysis, it can be known the Strenghts, Weaknesses, Opportunities, and Threats (SWOT) from PT. IMI that will be the basis in determining the selection of strategic positioning. Distribute the questionnaire to PT. IMI and its customer performed to get the key success factors that will be used to determine the performance and also to formulate the strategy for PT. IMI. <br /> <br /> <br /> Results of the analysis will be formed in the proposed solutions and implementation. PT. IMI should implement cost focus strategy with emphasis on value addition to the product as well as the selection of segments to paper industry. Paper industry is chosen because of continues to grow rapidly and the use of kaolin as a raw material in the production process that need a lot of kaolin. <br /> <br /> <br /> Some of the recommendations proposed strategy is repositioning strategy that focused on quality of product, price of product, and meet customer demand. Strategy in Quality of Products to improve the quality of kaolin and develop new products that can be received and compete in the paper industry segment. The use of alternative energy in the form of electrical energy, wind energy, and solar thermal energy conducted in the Strategy in Prices of Products. It is necessary to lower the cost of production to reduce the selling price of kaolin. Meet Customer Demand Strategy will meet the market demand for kaolin by increasing <br /> <br /> <br /> vi <br /> <br /> <br /> production capacity that can be done by adding the hydrocyclone so there is no bottleneck in the production process.