PROPOSED BUSINESS STRATEGY PT AA STEEL

• Main Author: Tri Sudewo, Aditya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53209
• Institution: Institut Teknologi Bandung

AA Steel is the largest steel company in Indonesia and with continuous development led the company to become the only integrated steel company in Indonesia. Growing financial expenses due to debt caused AA Steel, to suffer losses for seven consecutive years. The financial expenses recorded by AA Steel in 2018 reached US$ 112.33 million, more than double its number from 2012 which was only US$ 40.62 million. This research objective is to analyze AAS business conditions and find business solutions by proposing business strategies for AAS so that it is expected that AAS conditions will be better and achieve sustainable competitive advantages. The research is consisting of internal analysis, external analysis, business strategy formulation, and an implementation plan. The first step of the process is internal and external analysis to determine the main concerns. Five Forces Porter analysis and PESTEL analysis is used for external analysis. And for internal analysis, this research is used Resources-based analysis, VRIO analysis, and Value Chain analysis. Besides that, the author also analyzes data from AAS customer online survey, AAS staff interviews, and company internal data. As a result, based on TOWS Matrix AAS, the business strategies have been formulated which consist of product diversification, digitalization, cost focus, restructuring business flow, and vertical integration. After formulation by the TOWS matrix, the author uses Diamond Strategy to make precise and summarize the strategy. The authors also proposed a new business canvas model for AAS to expand sustainable competitive advantages. The implementation of this strategy is divided into 2, which are internal focusing in the first phase and the second phase is to expand the business.