NEW BUSINESS STRATEGY FOR PT MALL NIAGA ONLINE TO GAIN COMPETITIVE ADVANTAGE IN THE E-COMMERCE INDUSTRY

• Main Author: SATYA WARDHANA (NIM 29114492), WEDHA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31565
• Institution: Institut Teknologi Bandung

Tukushop is an e-commerce that first goes online in 2011 by PT Mall Niaga Online, a subsidiary of PT Duri, One of the largest corporate group in Indonesia that runs its business in commodity, banking, electronics, property and hotel. Tukushop intent to bring the concept of an online mall that will be the first in Indonesia by offering a great online shopping experience to Indonesian customers. Tukushop partnering with world-class technology providers, logistic partners, banking partners and merchant partner with high standards to create a back-end system that can meet the needs of its users. This in line with PT MNO vision to bring satisfied customer service, drives the company to propose convenient yet secure online transaction that still scares most Indonesian online user and this value proposition act as the strong point for the company. <br /> <br /> Over the last 5 years the E-commerce has through significant growth in Asia Pacific including Indonesia, the number of the buyer is continuous to grow exponentially but Tukushop missed its GMV target in 2016, the warehouse is overcrowding during high season and market share is dropping, based on a survey conducted by Dream Indicator among 1468 samples in August 2016, mentioned that Tukushop has about 7% share of the market, or only about half of its largest competitor. <br /> <br /> The purpose of this writing is to find the new business strategy for PT Mall Niaga Online to gain competitive advantage, to increase its market share, its profit and to become a market leader in Indonesia. This writing begins with external and internal environment analysis in order to get more understanding of company’s business condition. The External environment analysis is conducted using PEST framework to understand the external situation of the company mainly the relevant macro environment factors of industry where the company operates and Porter Five force analysis to get understanding in the competitive position of the company in the e-commerce industry. The internal environment analysis is conducted by assessing company activity using Value Chain analysis. The external and internal environment analysis is then summarized in SWOT analysis tool that describes PT MNO internal strength and weakness along with its external opportunity-threats. <br /> <br /> To get primary data, this writing conducts quantitative research through a questionnaire to get customer insight about e-commerce market and their preferences as for qualitative research is conducted through an interview with the expert in the company. This primary data along with the secondary data become a base for the decision of recommended strategy for the company. The writing is then continued with the formulation of business strategy using Generic competitive strategy and competitors analysis with SMART decision-making tools, concludes that the recommended generic business strategy for PT MNO is differentiation strategy. This writing also describes the importance of Growth strategy to the company objectives by using Ansoff Matrix and shows the company should focus on the new market development of B2B. Based on both generic strategy and growth strategy with its alignment with company vision and mission, PT MNO should pursue the competitive advantage through its superior product quality, maintain and improve customer relationship, more intensive brand building through integrated marketing communication, improvement in product availabilities, and other differentiation strategies while the strategy for its growth is to focus on new market development expanding into B2B business type.