PROPOSED BUSINESS STRATEGY FORMULATION FOR HEAVY EQUIPMENT RENTAL SERVICE (CASE: CV KAHURIPAN)

• Main Author: Arif Wicaksono, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53090
• Institution: Institut Teknologi Bandung

CV Kahuripan is a company engaged in heavy equipment rental services, namely: forklifts, towing, and truck cranes. The company is located on Rancaekek Highway, Cipasir village, Bandung Regency. CV Kahuripan has 20 forklift units with capacities from 2 to 15 tons and is the only forklift heavy equipment rental service company in Rancaekek which is an industrial area. When viewed from geographical segmentation, heavy equipment rental services themselves are very suitable for the Rancaekek area because the location of the company has potential and beneficial value because Rancaekek is an industrial area and is quite strategic for the Bandung city area. The problem experienced by the company today is the decline of forklift rental during the COVID-19 pandemic at least 30 orders starting from January 2020, this is due to the number of goods or machinery held in the domestic port or foreign port and can’t reach the target which increases 30% - 40% from the previous year. CV Kahuripan wants to increase the forklift rental in the period of the current pandemic. The methodologies used in this research are in several numbers, according to the analysis of the internal and external environment. The internal analysis used Marketing Mix 7P and Resource-Based View Analysis. Meanwhile, the external environment used Porter Five Forces Analysis, Pestel Analysis, and Competitor Analysis. TOWS Matrix and Quantitative Strategic Planning Matrix (QSPM) are also used to develop the strategy. From the internal analysis, it could be concluded that the CV Kahuripan has five strengths (Provide a price that is suitable to customer needs, Many variations of forklifts are offered, Good price negotiations with customers, It has a strategic location in the factory area, and Have experienced employees) and five weaknesses (Lack of social media promotion, Job desk employees who haven't been specific, Lack of social media utilization, Poor forklift service Process,and Less Clean Office environment). From the external analysis, it concluded that the CV Kahuripan has five opportunities (Rancaekek consumers tend to be obtained by companies, There is no substitute service in the heavy equipment industry, The low bargaining power of suppliers in the forklift heavy equipment industry, especially in the spare parts, Forklift rental industry companies have the opportunity to be used as vendors by large companies, and Companies in the forklift rental industry have the opportunity to expand the market) and five threats (The competitor has begun to utilize internet technology in the context of promotion or market expansion, The forklift rental industry is experiencing a decline in demand from companies that require heavy equipment rental services because of the COVID-19 pandemic period, There are heavy equipment industry companies that already expanding marketing areas in different cities, The heavy ii equipment industry has intense price competition due to the number of companies in the same industry, and Competitor companies have good product quality and variety of services offered more). The result of the research is developing a strategic plan using the Quantitative Strategic Planning Matrix (QSPM). CV Kahuripan needs to conduct an alternative strategy based on the ranking from the biggest to the smallest of the Total attraction score (TAS) obtained from QSPM which identifies the implementation of the proposed strategy sequence for CV Kahuripan: 1. Provide working specifications to suit the skills/expertise of the employees (TAS: 6.86). 2 Determine customers based on rental history (TAS: 6.84). Designing a corporate marketing system to get new consumers (TAS: 6.80). Always maintain good relations with customers (TAS: 6.78). Looking for big companies who need heavy equipment services on a large scale (TAS: 6.74). Recruit mechanics employees to expand the business that CV Kahuripan can open a forklift service (TAS: 6.70). The implementation plan of the alternative strategy consists of timeline activities. The timeline activities consist of a more detailed set of what activities CV Kahuripan needs to be done. The implementation is hope to help CV Kahuripan to solve the business issue and achieve their set of targets.