BUSINESS STRATEGY FOR SUSTAINABLE GROWTH (CASE STUDY OF A SOFTWARE DEVELOPMENT COMPANY)

• Main Author: Prio Aji, Aunurrahman
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49275
• Institution: Institut Teknologi Bandung

Growth is essential to every company because companies create shareholder value through its ability to sustain and generate profitable growth from time to time. A company must grow consistently, regardless of the tough competition. Growth will provide a company many abilities such as to add resources, innovate new products, and to acquire new market. In opposite, without growth company will suffer from a lower standard of products and services quality, operations will stagnate, decreased employee morale, and reduced quality of customer service. Sustainable growth also will be important for the long-term credibility of a company. However, the quest for achieving and sustaining profitable growth is not an easy task. Once a company's core business has matured or reached its peak, sooner or later it will be declined. There are only two choices: grow or shrink; nothing stays the same. To keep growing, companies must innovate. Companies must pursue new platforms for continuous growth. Companies must also maintain its distinctive advantage over the competitors. In the software industry, nowadays, there has been a major shifting in customer demands — this shifting in demands, particularly in the presence of democratization of technology. The democratization of technology has brought a whole new level of challenges to the industry. These challenges could obstruct the company’s growth if not appropriately anticipated. Companies nowadays must begin to define business-level strategies that contained goal-oriented activities to achieve a competitive advantage to be able to achieve sustainable growth in the market of software development. Business-level strategies, including strategies to extend revenue streams, and at the same time, become more responsive and agile. Companies must also define its corporate-level strategy, which including vertical integration, diversification of products and services, and geographical market strategies. In this era of the service economy, software companies must choose a specific solution for a specific industry, instead of being general software development for any industry. By focusing on providing specific services in a certain market, software development companies will able to come up with new business strategies with competitive advantages that able to deliver sustainable growth.