PROPOSED BUSINESS MODEL FOR CHEMICALS TRADING COMPANY: A CASE STUDY OF PT. SREE INTERNATIONAL INDONESIA

• Main Author: Rizki Ramadhan, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63650
• Institution: Institut Teknologi Bandung

Chemical industry promotes the industrial development of a country where the products are needed as a raw material for the manufacturing process of textile, soap, detergent, paper, glass, food, etc. The number of chemicals export and import in global have continued to increase from 2015 to 2018. One indicator of the economic development is positive growth in the foreign trade sector, i.e., exports and imports. However, the COVID-19 pandemic has adversely impacted businesses, households and the economy. The world is facing weak global demand, disruptions to supply chains, reduced consumer spending, all of which contribute to the substantial decreases in both trade and GDP. In 2019, the sales revenue of PT. Sree International Indonesia has decreased by 19% from the previous year due to declining supply and demand, also challenges in delivering goods across most international borders that have been impacted by restrictions. With a focus on the company's problems, this study analyzes the business condition based on its external and internal factors, develop business model that helps the company to regain lost sales from COVID-19, and make an implementation plan. This research was conducted using qualitative methods in the form of interviews. The external analysis is performed using PESTEL and Porter's Five Forces, whereas the internal analysis is using Resource-Based View and VRIO framework. The results of the analysis will be used to formulate the business strategy with Strategy Diamond Model and Business Model Canvas. It can be concluded from this research that the company is in a position where the external factor is not favorable. There are many existing competitors which dominate the market. Not only the other trading companies but also chemical manufacturers are the competitors. However, internal factors such as human resources, international offices, financial strength, global trade data, IT-enabled marketing and owned logistics company, can be a competitive advantage for the company. In order to achieve its business objectives, the company should improve the online presence with automated service, penetrate the new market and establish a representative office. Thus, it becomes more reliable and the customers can be handled directly.