BUSINESS STRATEGY FORMULATION FOR A START UP WELLNESS RESORT BUSINESS

• Main Author: Adicahyadi, Anna
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62862
• Institution: Institut Teknologi Bandung

COVID-19 pandemic hit travel and tourism industry very hard and expected to be rebound in 2023. On the other hand, COVID-19 also changes consumer behavior to be more health conscious, more awareness in mental health, more work from home, prefer local/domestic products, and more time spend on digital and social media. The changes are expected to continue even after COVID-19 pandemic ended. This create big opportunity for wellness tourism as the solution to respond to changes. Wellness Resort is a startup to be created, want to ride the wave of customer demand evolution post COVID-19, grab the opportunity of travel & tourism industry falling and create new business model then entering the market with innovative wellness product when the industry is recovered in 2023. This research’s objectives are to analyze the wellness market in Indonesia, select the target market and develop unique value proposition to them, develop ideal core competencies to gain competitive advantage, then formulate correct business strategy in order to successfully launch and introduce the product to the market and become part of wellness tourism industry players. In this research, the author conducted the external analysis using PESTEL framework and 5-forces model, internal analysis using VRIO model, and market analysis using questionnaire and develop customer persona. Based on those analysis, the author proposes suitable strategy using Porter’s Generic Strategy framework and develop more detail strategy per resort location using Business Model Canvas. The research shows that external environment of wellness market is quite positive and has high potential to grow especially due to government support and economic growth with increasing purchasing power. The rivalry among existing competitors also rated low to medium. While internally, Wellness Resort have several VRIO resources in its strategic/special features in the location, strong partnership with wellness consultant and unique wellness programs. The research show that the Company should target affluent consuming class and wealthy class market who aged between 25 to 65 due to their needs and frustrations can be solved through wellness programs and they can afford premium price of the products. The Company’s ideal core competencies that need to be developed are unique and superior wellness program; strategic branding and marketing; open partnership / collaboration; and fit-to-market locations. This will lead to competitive advantages of differentiation, specialization, and affordable wellness to access. Focused differentiation strategy need to be implemented as market is niche and the Company’s wellness program have unique feature to increase perceived value. Program focused Business Model Canvas is suitable for Jogja Village Inn in serving affluent consuming class while luxurious program focused Business Model Canvas is more suitable for Kaliandra Resort which serving wealthy class. The different focus and target market mainly affect customer segments, customer relationships, and value proposition blocks in the canvas. Through partnership/collaboration strategy, the Company can focus on program development and sales marketing activities. Then it can reduce cost structures significantly and more focused revenue streams. Committed to give more affordable wellness programs in more affordable locations for the Indonesia domestic travelers, the Company’s product price might be lower than competitors, but with lighter cost structure and more sizeable target market, high profitability still can be achieved.