PROPOSED BUSINESS STRATEGY OF PT JASA LAYANAN OPERASI IN ORDER TO INCREASE COMPETITIVE ADVANTAGE IN INDONESIA

• Main Author: FARABI (NIM 29316120), HISYAM
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27883
• Institution: Institut Teknologi Bandung

PT Jasa Marga (Persero) Tbk is a holding company with various subsidiaries in Indonesia. One of its subsidiaries is PT Jasa Layanan Operasi (JLO), which was established in 2015. This company’s business focuses on toll road operation. In achieving this, it first ventured to provide human resources for toll fee collection. However, despite initial success, results between 2015 -2017 indicated that PT Jasa Layanan Operasi (JLO) was only able to reach the established customer base of its parent company without being able to attract projects outwith its parent company. The objective of this research is to propose a business strategy for PT Jasa Layanan Operasi (JLO) in order to increase its competitive advantage in Indonesia. <br /> <br /> There are several obstacles to attract more clients, such as that the company’s offered price for its services is higher than its competitors and the absence of the possibility to offer a premium price. Following this, it is necessary to generate a suitable and effective business strategy in order to raise the company’s sustainable competitive advantage (SCA). <br /> <br /> The methodology undertaken includes in-depth interview to analyze four stages starting from problem identification, external business analysis (PESTEL, Porter's 5 Forces & Competitive Advantage) and internal (Porter Generic Value Chain & VRIO). The external and internal business analysis allows for the generation of a SWOT framework. This framework will facilitate the business strategy formulation covering Porter's Generic Strategy, TOWS Matrix, 5 Major Element, Activity Mapping, Blue Ocean Strategy & New Business Model Canvas. <br /> <br /> From the research, it is concluded that PT JLO is fully supported in financial and HR. However, its price strategy and technology are a crucial weakness. Overall, the toll road industry is a promising business with the major threat from private companies. The generated business strategy for PT JLO is cost leadership by technology achievable through operational excellence, specifically through lean management. An opportunity which would allow for this strategy is a partnership with the 3 following companies: (1) Technology Company (Learning Machine); (2) IT Consultant (TechData); and (3) Bank. PT JLO company’s main business expenditures lie in human resources, whereby it constitutes 75% of the overall expenditure. The proposed business strategy will allow 1 personnel to cover 4 toll gates, which will reduce the overall cost approximately by 20%. By implementing this strategy, the company's SCA will increase and facilitate it in attracting more external clients outwith its parent company’s original customer base. <br />