BUSINESS STRATEGY TO GROW IN THE INDONESIA RAILWAY MARKET WITH DIGITALIZATION DIFFERENTIATION STRATEGY OF MRSC CORPORATION

• Main Author: Ajisurya, Kidung
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62821
• Institution: Institut Teknologi Bandung

To keep the economic growth, Indonesia government has developed a masterplan that also focus to build the railways infrastructure. The government is targeting to have 12,965 km of railroads to the existing railroads of 6,099 km. The goal of this development are to accommodate big plan of Indonesia government to shift the economy, to reduce the logistics cost, to reduce the level of congestions in major cities. MRSC is a successful railway signaling system in its home country and successfully expanded its market to international market. Indonesia has been set as one of the key market for MRSC to grow. Despite its leading performance in other regions, the results in the past three years are below the company’s expectation. MSRC need to find new business strategy to grow and win the market in Indonesia. To help MRSC finding the right strategy, this final project was conducted. The research will be divided into three process i.e. market analysis, competitive strategy formulation and business strategy implementation. In first phase of the research, the author will do market analysis examining both external and internal factors using PESTEL framework, Porter Forces analysis, VRIO framework and SWOT/TOWS analysis. Based on the result of first phase analysis, the business strategy can be formulated using Porter business strategies, Ansoff Matrix, and the timing (pioneer or late entrant). Last step on this phase is to define the route to market strategy, by establishing a strategic alliance. With the several alternatives of company available, Simple Multi-Attribute Rating Technique (SMART) tool will be used to define the right partners. The result of this phase is to define the business model strategy.