NEW STRATEGY FOR GROWING THE BUSINESS OF DANIELI INDONESIA (IRON AND STEEL MACHINERY)

• Main Author: Winarso, Herry
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46943
• Institution: Institut Teknologi Bandung

Iron and steel industry is among the sensitive and highly strategic groups of industry, due to iron and steel products are not only raw materials for metal-based manufacture industries but also as pillars of development in construction and infrastructure sectors that it is called the “Mother of Industry.” The development of the iron and steel industry requires comprehensive handling, especially in the mastering of processing technology and improvement of the added value of the resources to guarantee effectiveness, efficiency, and continuity of the national iron and steel industry, with role of as the Mother of Industry, which is the “Backbone” of the other industries and supporting in the development of national economy. Therefore, the Government’s role becomes highly crucial in developing the national iron and steel industry. Initially, the Indonesian steel industry was the largest in ASEAN, however over time, the position of Indonesian declines and no longer the largest. Danieli & C. is one of the three top manufacturers of plants and machines for the steel-making industry in the world. It is the world leader in minimills and facilities for the production of long products, and second, in flat products The effective unavailability of government protection to domestic producers made imported steel products streamed heavily in both upstream and downstream sectors. This condition made the steel producer cannot grow and become stagnant in income; it cannot compete in fixed costs regionally and internationally; therefore, cannot invest effectively. The unavailability of significant and integrated investment made Danieli's business in Indonesia become tough to grow. The purpose of the research is to develop a business strategy for Danieli Indonesia's representative office to grow its presence and business in Indonesia and choose the correct product and value proposition to the Indonesian market. To achieve the research objective, this project utilized a conceptual framework that has been compiled by the author. Data collection in the method of interviews into Indonesia iron and steel industry stakeholders was conducted along with a direct survey questionnaire into the experts to understanding industry current situation and stakeholders' perspective of Danieli's overall performance. Various analysis framework were utilized to understand Indonesia iron and steel business environment, and company internal advantages, strength and weakness in responding to it; started from PESTEL analysis, Five Forces Porter analysis and SWOT analysis. The strategy was developed by utilized the business canvas model to understanding in detail the company's internal strengths and opportunities. The implementation of the strategies is conducted in sequences: costing evaluation, financing support, expertise increment, partnership development, and investment. The implementation will begin in the first quarter of 2020.