BUSINESS STRATEGY IMPROVEMENT FOR MANDIRI ONLINE

• Main Author: Wicahyo Pambudi, Gilang
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35609
• Institution: Institut Teknologi Bandung

Nowadays, digital had changed the game for most business leaders including Bank Mandiri. In order to accommodate the needs of people in using online banking service, Bank Mandiri had officially launched digital banking product called Mandiri Online in March 2017. However, the company facing the problem regarding number of transaction on Mandiri Online. On the last one year from 2017, the number of transaction on Mandiri Online is lower than Mobile/Internet Banking even though the graph is still growing to around 8.5 million transactions including 1.5 million payment transactions, 1.2 million purchase transactions, 5.5 million transfer transactions, and 0.3 million top up transactions, compared to around 17 million transactions in Mobile/Internet Banking including 2.8 million payment transactions, 4 million purchase transactions, 10 million transfer transactions, and 0.2 million top up transactions. According to this situation, the main purpose of this final project is to make business strategy to boost up the number of payment, purchase, transfer, and top up transactions on Mandiri Online. This study applied several conceptual frameworks from the problem identification into implementation plan. In analyzing current business of digital banking, external analysis (PESTLE, Porter’s Five Forces, and competitor analysis) and internal analysis (APQC’s PCF and VRIO analysis) have to be considered. Eventually, the main issues are identified: unstable systems; project implementation delays; and the need for integrating the system with other companies who involved in Mandiri Online’s transaction activities. Having conducted business strategy formulation through Porter Generic Strategies, TOWS Matrix, and Five Major Element of Strategy, several strategic solutions are proposed to Mandiri Online: communicate product’s superiority based on its strength through digital marketing channels focusing on web and smartphone users; improve existing Mandiri Online features by adding biometric authentication; create customer loyalty program to increase their loyalty further; improve robustness and stability of Mandiri Online’s system; designing application that can perform well in poor connectivity; building a partnership with government to conduct or facilitate the financial transaction activities through Mandiri Online; and develop and maximize strategic alliances with fintech and marketplace platform firms that can be used as transactional intermediaries’ entity. The implementation of these strategies is developed within a short-term and long-term plan.