BUSINESS STRATEGY FORMULATION FOR PUBLISHING COMPANY: A CASE STUDY OF ITB PRESS
With emergence of technological and social change, rivalry between firms in the publishing industry is becoming more intense. Number of publishers in Indonesia keeps increasing, while switching cost of customer is low. ITB Press has a volatile revenue, where they experienced revenue decrease in 20...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/50914 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | With emergence of technological and social change, rivalry between firms in the publishing industry is
becoming more intense. Number of publishers in Indonesia keeps increasing, while switching cost of
customer is low. ITB Press has a volatile revenue, where they experienced revenue decrease in 2016
and 2019. The business also has not grown much, where the average revenue growth from 2015 to 2019
is only 15,93%. In order to improve their performance, remain competitive and sustainable in the
publishing industry, ITB Press needs to formulate their business strategy and model.
Author interviewed three representatives of ITB Press and examined related secondary data to map the
current Business Model Canvas (BMC). Then carried out internal analysis through resource and value
chain analysis. For external analysis, author used business model external environment and
benchmarking analysis. Furthermore, author performed SWOT analysis in BMC, followed by strategy
and new BMC formulation. To create value innovation, author used Four Action Framework.
Cost leadership is deemed as the most appropriate business strategy, which demands ITB Press to
conduct process innovation. Meanwhile, Long Tail Business Model combined with Multi-sided
Platform is the appropriate business model, where ITB Press needs to focus on offering large range of
niche products through their website.
To implement proposed business strategy and model, ITB Press needs to recruit highly skilled human
resource in IT and digital marketing to build and develop IT and marketing division. ITB Press should
establish KPI (Key Performance Indicator) to measure employee performance. The company should
develop service and product type, with addition of format and genre using developed website. ITB
Press can build partnership with tech companies, eBook retailers, niche content provider and printing
companies to cut cost for operation. To reach wider market, ITB Press should increase its choice of
channels. |
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