PROPOSED COMPETITIVE STRATEGY TO IMPROVE RAJA HAJI FISABILILLAH INTERNATIONAL AIRPORT PERFORMANCE

• Main Author: Karina Utami, Nurul
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42923
• Institution: Institut Teknologi Bandung

Airport business is a capital intensive industry. It needs many funds in developing and improving airport facilities and infrastructure to keep on competitive. Raja Haji Fisabilillah International (RHF) Airport is one of the airports operated by PT Angkasa Pura II (Persero). For years, the airport financial performances are in harmful condition. The operational expenses are much higher than their revenues. Top Management of PT Angkasa Pura II (Persero) is a concern with this issue and command RHF Airport Management to find an alternative strategy to improve the airport performance. For this research, the strategic management process used to define the best fit strategy for Raja Haji Fisabilillah Airport to get a better understanding of an external and internal situation so that the airport can improve its performance. The strategic started from environmental scanning, strategy formulation, and strategy implementation and evaluation. The data collection used in both primary and secondary data. Primary data is collected by using a qualitative approach that is interviewing and group discussion with the airport management. Secondary data such as annual reports and RHF Airport management reports are gathered by using a quantitative approach. After conducting internal and external environment scanning using SWOT analysis, then the information is evaluated by the IE Matrix, Grand Strategy Matrix, and Porter General Strategy. The result of the analysis is found that the competitive position of Raja Haji Fisabilillah International Airport in the market is weak, so the airport has to implement intensive strategies to improve its competitive position. The airport can do market development, market penetration, and product development. RHF Airport can also do a horizontal integration in order to get product enhancement and market expansion. Moreover, by doing a horizontal strategy such as merger and alliance, the airport can eliminate the competitors. Divestiture and liquidation strategy will not be done, although the airport is not generated revenue. This is because the primary purpose of the airport development is not only about commercial but also as a place to connect people from one place to another place. Furthermore, if we look at the geographical conditions of Kepulauan Riau Province, many remote small islands require air transportations as a means of connecting between regions. A recommendation strategy that is suitable for RHF Airport's current condition is creating a General Aviation business. This business is a product that never implemented by airport competitors, and it can grab different segments of customers. Besides, this business does not require substantial investment because airport facilities are sufficient. The proposed implementation plan provides six months program, which can be adjusted as the environment might be changed.