THE GROWTH STRATEGY OF PT KRAKATAU POSCO TO IMPROVE ITS COMPETITIVE ADVANTAGE

• Main Author: ALVEN PRADANA (NIM 29316098), WENDI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31570
• Institution: Institut Teknologi Bandung

Krakatau Posco is a young-age steel company, built in 2011 and has started the operation phase by the end of 2013. Krakatau Posco was founded on a joint venture between Krakatau Steel and Posco. The production facility owned by Krakatau Posco is capable of producing a maximum of 3 million tons of steel per year. The integrated steel factory built in Krakatau-Cilegon Industrial Estate is the first steel factory in Indonesia and Southeast Asia that uses Blast Furnace technology. The main products of Krakatau Posco are Steel Slab and Steel Plate. <br /> <br /> Over the past 5 years, the global steel industry has experienced difficult conditions due to oversupply and rising raw materials prices. Although it has not been able to record nett profit since its first year of operations, Krakatau Posco recorded stable operating performance as a young-age steel producer. The development of the national steel industry that began to show positive signals and the potential demand of the national steel industry must be responded by the company's development strategy so as not to lose the opportunity and momentum. For that, we need to analyze the business situation (external and internal) in order to describe the existing condition of the company. The results of the analysis are then identified with the company target to find out the company's strategic resource gap. With the Resource Pathways Framework, it can help determine the company's strategy to improve its competitive advantage. <br /> <br /> The analysis results show that Krakatau Posco must close the gap on strategic resources that include innovation resources, human resources, operations facilities and brand reputation. To improve the gap, Krakatau Posco is recommended to use different strategies for each resource. Internal development pathways are used to develop innovation and brand reputation resources. Basic contract pathways to develop operating resources. Moreover, alliance pathways to develop human resources.