PROPOSED BUSINESS MODEL FOR KUPEDES MICRO LOAN PRODUCT OF PT BANK RAKYAT INDONESIA

• Main Author: Elvina, Lydia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47806
• Institution: Institut Teknologi Bandung

PT Bank Rakyat Indonesia is the market leader in micro credit distribution in Indonesia. However, in the last 3 years the portion of BRI's micro credit distribution compared to the total distribution of micro credit in the national market has continued to decline. This is a big challenge for BRI to maintain its position as a market leader in micro credit distribution. One of BRI's main micro loan products is called Kupedes, this product has been around since 1984. As a main product, further analysis and evaluation of the performance of Kupedes products is needed to resolve the problem of this downward market share trend. The purpose of this research is to propose an improvement strategy in order to improve BRI's competitive advantage and maintain its position as a market leader also holder of the largest portion of micro credit distribution in Indonesia, and propose a new business model that suits the needs of the current generation by specifically targeting millennials as the majority generation of business players today. The method used in this study is a qualitative method with primary data and secondary data. The author has conducted interviews with related divisions, namely interviewing division management who have an important role in BRI's Micro business sustainability. This interview aims to get a brief overview of Kupedes product performance and internal conditions of the company. In addition, the authors also conducted a company's internal analysis using the VRIO framework, resources analysis, and core competencies. Meanwhile, to analyse the company's external conditions, the author uses PESTEL analysis, porter's five forces analysis, and competitor analysis. After that, the author formulated SWOT analysis and diamond strategy analysis for PT Bank Rakyat Indonesia, which was then used as a consideration in developing the new business model for Kupedes products.