BUSINESS STRATEGY FORMULATION FOR SHARIA PROPERTY DEVELOPMENT (CASE STUDY: SASMITA PROPERTY)

• Main Author: Sasmita, Andi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46579
• Institution: Institut Teknologi Bandung

The recent economic slowdown has managed to weaken Indonesia's purchasing power and consumer confidence. The property market also tends to be sluggish due to oversupply. Thus, it can be argued that the property market is increasing in line with economic growth in Indonesia. While the economic growth is strong enough, demand for the property product would increase due to higher consumer purchases. On the opposite, due to the lower economic conditions in Indonesia, the property market will become sluggish. On the other hand, there are also social trend in Indonesian market that some people tends to avoid interest (riba) due to Islamic law (sharia). Islamic financing currently is growing amidst conventional way of financing. This trend could also impact to property sectors, since they will choose property developer with financing options that offer interest-free financing scheme. One of the common Islamic financing methods is murabahah. However, at some points sharia banks are currently is still unable to meet sharia transaction standards. Therefore, Sasmita Property try to capture that opportunity and offer residential transaction without mortgage financing from bank. Consumers could directly pay to the property developer with cash or instalment plan. In order to help Sasmita Property to identify the company’s current condition and develop business strategy, this research was conducted with focus group discussion, interview, and perform observation of the company. Business strategy was formulated using Porter’s Generic Strategies. As a result, Sasmita Property could focused differentiation as business strategy, and functional strategy that focused on the root cause problem. To respond the economic slowdown, the company must create a strategy that involves organizational development, system development, and people development. The implementation of these strategies should prioritize the strategy which could have fundamental impact to the company.