PROPOSED STRATEGY AND IMPLEMENTATION PLANS FOR INDONESIA TIRE MANUFACTURER TO RETAIN COMPETITIVENESS IN PANDEMIC SITUATION

• Main Author: Kemaradinata, Restu
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62832
• Institution: Institut Teknologi Bandung

In 2020, the world was suffering from outbreaks of corona virus or Covid-19. The spread of the corona virus is very fast to all countries in the world. Until 22nd April 2021, globally there have been 143,445,675 confirmed cases and 3,051,736 deaths in 223 countries and territories reported by WHO. The Covid-19 outbreak has made people limit themselves to travel. Slowing economic growth can be seen from Indonesia's GDP growth which reached -2.07% in 2020. PT Roda Bangsa is the tire manufacturing industry that has domestic and export markets that more than 80 countries. Company’s sales revenue in 2020 decreased by 15,7 % compared to sales revenue in 2019. Large-scale social restrictions result in slow economic growth, bottlenecks in the supply chain (inbound and outbound), and reduced mobility including travel restrictions and physical distancing. This condition has led to a significant reduction in vehicle demand which will automatically reduce the need for vehicle spare parts, including tires. On the operational side, the Covid-19 virus threatens the health of employees and the continuity of production. Competition also getting tougher, from both local and global brands. Environment scanning is conducted to explore the conditions affecting PT Roda Bangsa’s activities. The external analysis uses PESTEL, Porter's 5-force, and competitor analysis. The internal analysis uses Value Chain Analysis, Resource base analysis, and VRIO Analysis. Strategy formulation in this final project uses the Diamond model as a strategy at a corporate level and SWOT matrix to formulate strategy at a functional level. Environmental analysis results PT Roda Bangsa's strategy to maintain existing markets while developing new market potentials. The domestic and American market are the focus of sales targets. PT Roda Bangsa also implements a short-term strategy to deal with the Covid-19 pandemic, especially to maintain the production process at the factory and also maintain financial health. The covid-19 pandemic has led to several poor conditions. However, the domestic and export markets still have market potential that can explore further by PT Roda Bangsa. Protecting the health of employees and their families from the Covid-19 virus has come in the first place. Financial planning needs to be reviewed and efficiency programs must be intensified to increase existing productivity in order to reduce costs in all company activities. PT Roda Bangsa also should maintain its differentiation strategy to get a sustained competitive advantage.