FORMULATION STRATEGY FOR INDEPENDENT INDONESIA DEFENSE INDUSTRY WITH EXPORT-ORIENTATION STUDY CASE: PT. XYZ (PERSERO)

• Main Author: Noerma Guphita, Ghita
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/50339
• Institution: Institut Teknologi Bandung

Based on the Regulation of the Minister of Defense of Indonesia No.19 of 2012 concerning the Minimum Essential Force (MEF) policy, it is important for Indonesia to meet the MEF target. The implementation of MEF is not only aimed at fulfilling the improvement in the quality of TNI personnel, but also on the development of Indonesia's Alutsista independently. The problem is, MEF Indonesia is still 75% from target 100%. To achieve this target, the role of the Defense Industry is needed by developing an independent and export-oriented Defense Industry. Based on data on sales of defense and security products PT. XYZ in 2017 to 2019 shows that export sales did not meet the target in 2019. This brings the question of what strategy should PT.XYZ implement to move towards an independent and export-oriented defense industry. Qualitative research methodology is used in this research to obtain information and identify alternatives for action improvement through primary data and secondary data. From these data, analysis of internal factors such as resources analysis and value chains analysis and external factors such as general analysis, industrial analysis using Porter’s 5 forces, and competitor analysis was conducted. The results of the analysis are summarized into the SWOT Matrix. Internal analysis for variables strength-opportunities, and External analysis for weaknesses-threats. The strategic formulation in this research uses several tools such as the TOWS Matrix, General Strategy Matrix, IE Matrix, and Ansoff Matrix to find out the right strategy for the company. The results of the formulation show that PT. XYZ needs to conduct internal horizontal integration through the development of its resources, product development and market penetration. To develop its business, PT XYZ also needs to integrate cost leadership and differentiation and improve its cooperation between domestic and foreign companies, government, and research institutions in the form of ToT and joint production. The strategy will be implemented based on the results of this research which divides it into five perspectives, namely corporate relations, customer, resource development, operations and business innovation. The implementation of a business strategy is conduct based on the source of company differentiation which divides it into four perspectives including corporate infrastructure, human capital management, technology development and procurement, including employee development, creating product innovation, and improving production quality.