THE DEVELOPMENT OF OMI MINI MARKET BUSINESS MODEL FOR INCREASING ITS STRATEGIC POSITIONING

• Main Author: FERNANDO MANIK (NIM: 29108336); Pembimbing: Dr. Ir. Mohammad Hamsal, MSE, MQM, MBA, SIMON
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/19473
• Institution: Institut Teknologi Bandung

OMI is one of many minimarket players in Indonesia. It is the result of a strategy formulation to increase the sales of its single supplier, Indogrosir. Indogrosir and OMI are under the same management of PT Inti Cakrawala Citra. OMI is acting as an authorized distribution channel of Indogrosir in which they must be supplied by Indogrosir only. This nature of business has made an unfortunate position of OMI to position itself in the market. <br /> <br /> <br /> One of the main issues that felt in the reality is the positioning issue in which OMI has not been achieving its competitive advantage after more than 5 years of operation and results in “identity crisis” that has been caused by the differences between the planned positioning strategy and the customer’s perception. The result is the OMI brand is still not popular and not become “top of mind” brand. This means that OMI’s business is running on its average and the profit is mediocre as well. <br /> &#8233;The tools that used to analyze the whole OMI’s condition are business strategy analysis and business model. The information collection method is qualitative and conducted through data collection, observation and confirmation through interviews. <br /> <br /> <br /> After the analysis conducted, the result is true that OMI is suffering from “identity crisis” which results in their mediocre performance. The business strategy that they choose is cost leadership while their nature of business is not allowing them to running on that strategy. <br /> <br /> <br /> To solve the problems, there is one choice that OMI must do in order to overcome that issue. They must reformulate their strategy regarding its positioning and quickly enter a position and lock it, but make sure that the position is suitable with their business nature to allow them to achieve its competitive advantage. The position that they should enter based on this study is the convenience store market. They should sell it at premium price and with a premium class atmosphere also. <br /> <br /> <br /> To make the recommendation successful, there are three alternative “vehicles” to support the success of the company’s transformation. The first is by creating another independent department in PT. Inti Cakrawala Citra organization and led by a dedicated director to direct and facilitate the running of the business execution. The second alternative is to establish a new legal company under the ownership of PT Inti Cakrawala Citra. This alternative will make PT Inti Cakrawala Citra act as a parent company. The last one is by selling the OMI business to other company but the special arrangement must be kept which is to bind the candidate company to be supplied from Indogrosir only just like the current arrangement. <br /> <br /> <br /> Finally, this study has shown that the business model analysis can help a business to retrospect and use it as a foundation to formulate a new business strategy to achieve its competitive advantage.