COMPETITIVE STRATEGY DEVELOPMENT FOR PT ANGKAT BICARA INDONESIA, A MARKETING AGENCY

• Main Author: Setyobagas Aritonang, Nathan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42544
• Institution: Institut Teknologi Bandung

Digital-based platform do vary in each industry and sector of business. On the side of the marketing industry, the digital emergence means that there will be a new way to help the client market their services or products. The digital-based platform emergence does bring their own challenges and opportunities, and ANGKAT BICARA is one of the agencies that is already savvy in the terms of marketing agency, both digitally and traditionally. Agency industry have become one of the attractive industry in Indonesia, seen from the large numbers of advertising spending that have a 10,1% growth rate (highest in the APAC region) and 7,07% GDP contribution in 2016. BEKRAF also listed that there are approximately 3055 creative business in advertising in Indonesia. This number gave the evidence that the agency industry in Indonesia is growing in a significantly large number. However, the compliance of the target set by the global headquarters for ANGKAT BICARA Indonesia is constantly decreasing, by an average of 2% per year. The decreasing of this compliance happens due to the large initial project fee charged by ANGKAT BICARA due to their capability in the marketing service delivery, and the emergence of local-based agencies which included in greylist that could turn down their price, making the clients feels like there are other cheaper substitutions for the agency. By using the analysis from the external and internal condition of the company and further strategy formulation using the framework of TOWS Matrix, Porter’s Generic Strategies, and Strategy Diamond Model, it came into conclusion that ANGKAT BICARA could offer an alternative strategy for pricing while still maintaining their service capabilities. ANGKAT BICARA is recommended to implement two strategies, which are: offering marketing consultant base of business with profit sharing revenue stream and becoming and agency with integrated ecosystem embedded in the client’s business process. By implementing these strategies, ANGKAT BICARA is expected to be able to compete with the local-based agencies while still maintaining their profit ratio, penetrate a larger client basis, and improving their client satisfaction.