PROPOSED BUSINESS STRATEGY FOR PUBLISHING COMPANY (CASE STUDY: CV GEMA USAHA IN SOLO)

• Main Author: Khairunnisa, Nadhira
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/49776
• Institution: Institut Teknologi Bandung

CV Gema Usaha is a company running in book publishing industry, provide school books for junior high school, high school, and vocational school. For the past 3 years (2016-2018) the company has been suffering from some problems that affect the business sustainability. Looking from the internal perspectives, the company has high inventory, lacking in human resources, and high receivables which affect the business at CV Gema Usaha. Based on financial data, the company is inconsistent in managing their operating expense (operating profit decreased by 40% from 22% in 2016 to only 13% in the 2 nd semester of 2018), has low net profit margin (7%), and has only 1% Return on Assets (ROA) which means they fail to manage their assets to gain money. Furthermore, external factors such as tight tax regulation, prohibition for school to sell books, and high competition with leading publishers that provide similar products, and low customer loyalty are affecting the sustainability of the business. To be able to survive in the publishing industry, companies need to make improvements to their business strategies. Business strategy improvement is proposed based on internal and external analysis. An evaluation of the business model currently applied is also carried out by author by analyzing the current business model canvas. The data obtained are primary data and also direct interviews with company owners. The results of internal and external analysis produce SWOT analysis which is then used to propose strategic solutions in the form of TOWS matrix. The strategy proposed for the company is to adapt the integrated cost leadership and differentiation business strategy, and shift the publishing business model from a conventional publishing to a base on demand model, by implementing a long tail business model that is equipped with a multi-sided platform. This strategy is proposed to solve the main problem of the company namely high inventories, low in cash, and limited human resources