CORPORATE STRATEGY TO INCREASE THE SALES OF PT SUMMARECON AGUNG ( REAL ESTATE DEVELOPMENT COMPANY )

• Main Author: Octaviani Gunawan, Jessica
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46863
• Institution: Institut Teknologi Bandung

For the past years, property industry in Indonesia has remained sluggish. Despite Bank Indonesia’s relaxation of regulations pertaining to home mortgage loans, sales volumes are still low and property prices remain flat with minimal escalations. Under the challenging condition, SA as a leading real estate development company must survive and stays ahead of competition. The purposes of this research are to identify the causes of company’s sales underperformance for the past three years, to identify competitive advantages that are needed to sustain the business in the future, and to formulate corporate strategy so the company could increase its property sales. For reaching those objectives, strategic management concept of analyze-formulate-implement (AFI) is used. For data collection, primary data is gathered through qualitative interviews and questionnaires, while secondary data is gathered through literature, articles, financial reports, and company presentations. To explore the business issues further, external analysis is performed through PESTEL Analysis and Porter’s Five Forces Model, while internal analysis is performed through Business Model Canvas, Value Discipline, and BCG Growth-Share Matrix. All data analysis are then combined and formulated through SWOT Mapping. The findings of the research show both external factors and internal factors are the main causes of SA’s decreasing sales. The external factors include property industry slowdown, stagnant purchasing power, apartment and office oversupply. Meanwhile, the internal factors include high pricing in SA’s product that do not fit with current economic situation, wrong product-market fit, lacked product innovation to grab potential market, and nonoptimal market analysis during the process. Based on the analysis, SA should do regular market analysis, innovate new product lines with attractive prices, improve product design capabilities and innovations to increase its product sales. For further growth, SA should create integrated information, knowledge sharing system, and do investment on big data analytics for better effectiveness inside the company.