IMPROVING TRADITIONAL AQUACULTURE FISH FARM BUSINESS STRATEGY TO INCREASE STRATEGIC COMPETITIVENESS AND PROFITABILITY

• Main Author: Kuncoro Hadi, Nur
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42975
• Institution: Institut Teknologi Bandung

Segoro Farm is an aquaculture fish farm operates in Parung, Bogor, Jawa Barat, which specialized in nurturing Gurami fish seeds. Considering the abundant opportunities of fresh water fish industry in Jawa Barat, Segoro Farm should have been able to get considerable profit and consistently grow. However, the current operation only resulted in ROIC around 4.6% per annum. Therefore, the objective of this study is to develop business strategy of Segoro Farm to improve firm strategic competitiveness and increase profitability. Understanding the external environment and attractive industry segment is essential prior to determine the optimum business strategy. Referring to Hitt (2016), the most suitable business model framework for Segoro Farm is the I/O Model of Above Average Returns. The framework started from studying the external environment and attractive industry, then continued with strategy formulation and development of resources, and ended with implementation. Based on market survey result, calculation of associated cost, and the nurturing period of every option, is was evident that nurturing Gurami from Nursery-5 until consumption size, then selling the product directly to restaurants has the highest profitability density. Therefore, SWOT analysis was conducted to understand the gap between current resources and the required resources to conduct the most profitable operation. TOWS analysis and Value Chain analysis were conducted to formulize relevant business strategies, and then resulted in four core competencies which can provide competitive advantage to Segoro Farm. The implementation of business strategies is divided into three major stages. Focus items, milestones, and Key Performance Indicator (KPI) of each phase is established to help Segoro Farm assessing the readiness before moving forward to the next phase. Financial projection was made to understand the forecasted profitability performance. At the end of the phase, the forecasted ROIC shall achieve 15.8%, significantly increasing from initial 4.6% ROIC.