FORMULATING BUSINESS STRATEGY FOR MEDIA AND BROADCASTING STARTUP: A CASE STUDY AT PT SVARA INOVASI INDONESIA

• Main Author: Fadhil Habibi, Farid
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46038
• Institution: Institut Teknologi Bandung

Currently, analog media are facing a quite serious threat facing digital media. For example, the radio industry was outstanding before 2000. However, int the era after 2000 until now, the radio industry continues to decline. Based on eMarketer data statistics from the last 5 years to the next few years, global radio revenue tends to stagnate, which is around $ 28B and sometimes it fluctuated within 1% up or 1% down. Of the total world advertising expenditure of $ 600B, the radio industry only contributes a revenue of around 5% to 6%. PT Svara, as a startup in the field of media and broadcasting, needed to make a strategy to be able to grow business, even though the analog radio industry which was one of the objects and a vision to be revived was experiencing a decline. This research method used was qualitative methods by conducting in-depth interviews with the founder of PT Svara and several actors in the radio industry. The results of the interview then combined with some secondary data from academic books, journals, paper publications, and online websites. Next, the external analysis was carried out using PESTEL Analysis, Five Forces, and Value Network before producing a strategy formulation that can be applied by PT Svara. Furthermore, the internal analysis was carried out using the VRIO Framework and Financial Perspective, and conclusions using SWOT Analysis. Some strategies are needed for PT Svara to realize its corporate vision. In general, PT Svara would implement "Platform Strategy", namely "Derivative Product" and also utilize the concept of "Network Effect". Derivative products are derivatives of the parent platform that can produce new markets. These products could help to optimize SVARA revenue in the short to medium term. Meanwhile, Network Effect could be used to support long-term strategies. In terms of reviving the radio industry, a strategy was needed to carry out Digital Transformation Radio which requires the radio industry to make changes. An approach with the Kotter 8-Step Change method was used and combined with the 7'S McKinsey Framework to map the change. The results of this study indicated that PT Svara has a huge opportunity to grow and realized its corporate vision, even though one of its objects is the radio industry which is experiencing a business downturn. This is because SVARA had a platform character, which not only relied on the analog radio industry, but could also enter different markets and businesses such as the community, airtime sales, audio-lands, online ads, and so on. Thus, one of PT Svara's vision to become a unicorn startup could be achieved.