IMPROVING BUSINESS MODEL FOR COMPOSTER BUSINESS: CASE STUDY OF PASMA

• Main Author: Mutiara Putri, Anne
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48907
• Institution: Institut Teknologi Bandung

In the alignment of the rising issue of extreme climate change and shifting, many people in Indonesia especially those who live in the urban areas have become consciously acts towards the green lifestyle making the demand for green value products to be most likely increasing and growing. According to the study made by Maxime C. Van Der Laarse (2016) finds that the most types of green practices that people attempt to process are waste-related practices which are reflected from how people start to make an effort to reducing, reusing and recycling waste. One of the most popular methods to reduce the organic household waste is through composting, within the increasing of composting methods rising amongst the public, the demand for complementary products to help the composting process also increases. PASMA, a waste processing company based in Bandung, offers people a convenient way of composting through their composter device, however, they faced an issue of customer irrelevant in buying the composter device. To analyze this problem, certain analysis such as Porter’s Five Forces, PESTLE, stakeholder analysis, market analysis, business model analysis, and internal situation analysis is conducted. The result shows that PASMA stagnant in composter device sales are caused by PASMA’s primary constraints in lack of marketing effort in funneling and awareness, limited capital in finance, challenges in adjusting technology cost, and lack of knowledge from the human resources. Several solutions were proposed in order to improve the sales activity as well as the managerial performance of PASMA. Financial planning and strict budgeting allocation must be executed as the baseline of PASMA’s decision making. Improving the marketing strategy such as developing new channels and revenue streams as well as improving customer relationships through online presence and hospitality service could bring more market attention to PASMA brand. Building collaboration with expertise and focusing to sell more simpler compost bin may improve the cashflow of PASMA. And lastly, maintaining and managing internal and external management and relationship by setting and tracking goals for each department could increase the productivity of the members, while building a positive environment with stakeholders to prevent any trust-issue and miscommunications between parties. The result of this study could help other businesses to improve and strengthen their business model value creation for composter products in Indonesia, under the condition that since the compost industry is still growing throughout the year, further study about the recent compost industry is recommended.