PROPOSED GROWTH STRATEGY OF PT NOSE HERBALINDO TO ADAPT COVID-19 PANDEMIC CRISIS

• Main Author: Fachrizal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53359
• Institution: Institut Teknologi Bandung

As a cosmetic manufacturer company, PT. Nose Herbalindo is facing mixed challenges within its new customer loss and limited production capacity due to the COVID-19 pandemic crisis. Therefore, The final project is primarily focused on finding & understanding which resources are owned by the firm that could be cultivated to deal with the issues given. The significant decline of new customer happens because the new customers are scared of starting a cosmetic business due to the economic recession that struck Indonesia. The new customers are not well educated about the positive growth prospect of the cosmetic industry in Indonesia during the pandemic crisis. These external conditions make the customer cautious to invest their money in the cosmetic business. In contrary, even though the economic recession impacted the decline profitability of many businesses within an industry, there are signs that the beauty industry might be sustaining against the pandemic crisis. The beauty industry has responded positively to adapt the pandemic, many entrepreneurs with their brands switching their alignment as a responsibility to ensure their survival as response to the crisis to produce health care products, such as; hand sanitizers, cleaning agents, and offering free beauty services for frontline response workers. Interestingly, the firm is able to manage the new customer loss temporary within its internal economies of scale and the old customer loyalty with a repeat order. Still, the outcome of the economies of scale of the firm resulted in a two outcomes; a exponential revenues of positive growth, but at the same time the amount exponential growth requires more supplies, materials, and human capital, which the firm no longer able to sustain those needs that caused limited production capacity. The whole analysis is conducted primarily with Resource Based View (RBV), Build, Borrow, & Buy Framework, & Ansoff Growth Strategy to determine the strategic resources that can be exploited to achieve sustainable competitive advantage. After conducting several resources analysis, it could be concluded that the firm has a strong internal development due its high tech machinery and equipment automation. Therefore, the best proposed solution as main strategic formulation is to cultivate a market penetration & diversification strategy as a growth strategy. PT. Nose Herbalindo must prioritize itself to focus on the digital areas and focused on its content marketing strategy that related to COVID-19 pandemic crisis as for the market penetration strategy. Moreover, the firm must put an empathy towards its social media campaign and cultivate email marketing as the main funnel on its digital marketing strategy. Moreover, as for the diversification strategy, the considerations to acquiring small warehouses/factories around North Jakarta as a new plant considered as a strategic way due to North Jakarta is a clustered industrial area. According to observation, there are many smaller factories/warehouses located in North Jakarta that some of them are abandoned or being sold. PT. Nose Herbalindo could use this situation to acquire those warehouses as an additional storage to deal with the limited production capacity.