BUSINESS STRATEGY FORMULATION FOR PUBLISHING COMPANY: A CASE STUDY OF ITB PRESS

• Main Author: Widya Bestari Wibisono, Aulia
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/50914
• Institution: Institut Teknologi Bandung

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.