BUSINESS STRATEGY OF PT DAHANA TO SUSTAIN ITS COMPETITIVE ADVANTAGE IN THE EXPLOSIVES INDUSTRY

• Main Author: FACHRUDDIN THOYIB (NIM 29114064), ACHMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20692
• Institution: Institut Teknologi Bandung

Since 2012, the commodity price especially mining sector has suffered downturn due to <br /> <br /> <br /> <br /> <br /> slowing global economy. There are no signs improvement for the moment. As demand <br /> <br /> <br /> <br /> <br /> from mining commodity decreases, it also affects demand for explosives. Facing the <br /> <br /> <br /> <br /> <br /> decreasing demand in mining commodity and uncertain condition of explosives demand, <br /> <br /> <br /> <br /> <br /> PT Dahana needs to formulate business strategy in order to sustain its competitive <br /> <br /> <br /> <br /> <br /> advantage. Moreover, mining division has netted sales more than 56% from total revenue <br /> <br /> <br /> <br /> <br /> of PT Dahana in 2016. It shows high dependence Total Revenue of PT Dahana on <br /> <br /> <br /> <br /> <br /> General Mining Division performance in generating sales. <br /> <br /> <br /> <br /> <br /> This final project is discussing about PT Dahana business strategy facing the uncertain <br /> <br /> <br /> <br /> <br /> condition in mining industry and tight competition that will lead price war from the <br /> <br /> <br /> <br /> <br /> competitors so that the company can maintain its profitability and growth. By scanning <br /> <br /> <br /> <br /> <br /> internal and external conditions in the business environment, PT Dahana can determine <br /> <br /> <br /> <br /> <br /> portfolio analysis in which quadrant PT Dahana is. The position will determine: <br /> <br /> <br /> <br /> <br /> 1. Attractiveness of Commercial explosives and Military Explosives industry <br /> <br /> <br /> <br /> <br /> 2. The correct strategy related to the position of Commercial Explosives and <br /> <br /> <br /> <br /> <br /> Military Explosives PT Dahana in the Product Life Cycle <br /> <br /> <br /> <br /> <br /> 3. How to penetrate new market i.e. military explosives and maintaining <br /> <br /> <br /> <br /> <br /> commercial explosives <br /> <br /> <br /> <br /> <br /> This thesis will also formulate the strategy for sustaining competitive advantage in <br /> <br /> <br /> <br /> <br /> Commercial explosives and growing n military explosives in Indonesia. Due to high <br /> <br /> <br /> <br /> <br /> dependence on imported raw materials and finish good using US Dollar while sales in <br /> <br /> <br /> <br /> <br /> Indonesian Rupiah, Dahana is exposed to Exchange Rate risk. How is the strategy to face <br /> <br /> <br /> <br /> <br /> the exchange risk will also be discussed in this project. <br /> <br /> <br /> <br /> <br /> The method used to collect primary data is by doing survey and questionnaires to several <br /> <br /> <br /> <br /> <br /> customers and a number of Dahana's employees. Secondary Data collecting from internal <br /> <br /> <br /> <br /> <br /> and external (i.e. Badan Pusat Statistik, Yearly Report of PT Dahana, internet source etc).