IMPROVING BUSINESS MODEL FOR HOME BEDDING INDUSTRY: A CASE OF MAGNA FARAMIGO

• Main Author: Kuncoro, Eddi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47791
• Institution: Institut Teknologi Bandung

Magna Faramigo is a small-medium enterprise that provides on bedding garment production. Established in 1992 at Tebet, Jakarta, Indonesia, with the vision Being a leading provider of home bedding in Indonesia and can produce other textile products. This research aims to purpose improving business model to optimize Magna Faramigo’s sales, revenues and profits. In this research, the business model of Magna Faramigo mapped through the business model canvas. After that, it was evaluated through internal analysis and external analysis to find changes that occur in the home bedding industry. The external business environment of the home bedding business consists of four parts: market forces, industry forces, key trends, and macroeconomic factors. By analyzing this external situation, strengths, weaknesses, opportunities, and threats are found in every business block of the Magna Faramigo canvas model. Business development opportunities can be created with the Blue Ocean Strategy using the ERRC Grid. The analysis shows that there is a development in terms of new value offer blocks and new customer segments. The first improvement for the Magna Faramigo business model is the new value proposition block, which prioritizes giving the appearance of the Magna Faramigo product brand so that it has an emotional purchase value for customers. In contrast, the improvement of the second business model is a block from the side of new customer segments that can make custom home bedding products with specific models and requests. Both business development models offered can be integrated into one business model canvas, so there is very little chance of conflicting conflicts between business units.