NEW STRATEGY TO FACE THE CHALLENGES OF THE DIGITAL ERA: CASE OF PT DJV LOGISTICS COMPANY

• Main Author: Chayadi, Devi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/54637
• Institution: Institut Teknologi Bandung

The world has entered the 4th industrial revolution, where digitalization has become a part of human life. Internet users in Indonesia are increasing; even in 2019 Indonesia has been ranked the 4th country with the world's highest internet users. The logistics industry is one that is affected by this digital disruption. However, the logistics industry has not been able to adapt to the rapid technological advances. According to a 2016 study by PwC, only 28% of logistics companies are considered advanced in digitization. In fact, to welcome Indonesia's various opportunities today with support from an economic and political side, digitalization will bring positive changes and improve the logistics industry's performance. This research examines the case of PT DJV, a fast-growing logistics company in Indonesia. PT DJV as a logistics service provider also enjoys new opportunities that have emerged after the technology disruption, one of which is the demand for logistics services in Indonesia's e-commerce market. This research focuses on business strategies and new business models for PT DJV in facing the challenges of the digital era. For this reason, the author has conducted an external analysis using PESTEL and Porter's Five Forces models, as well as an internal analysis using the Business Model Canvas and the VRIO framework. In addition, the author has conducted interviews with twenty respondents and a survey of fifty-four respondents to understand more deeply about business strategies and customer expectations in the logistics industry. The analysis results, interviews, and survey determine the new business strategy for PT DJV using Strategy Diamond framework, which generate new Business Model Canvas for PT DJV. Based on the research, PT DJV must restructure the current business strategy to improve service quality by adding value and service features, new marketing channels, improving human resource competence, and applying technology in PT DJV's logistics business operations.