SELECTION OF NEW BRANCH LOCATION FOR MARKET EXPANSION (CASE STUDY: PT. XYZ)

• Main Author: Hesaputri Suryawan, Winsya
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63710
• Institution: Institut Teknologi Bandung

The conveyor belt is a tire or belt connected to two or more rotating pulleys to transport and move the goods. PT. XYZ is a company that provides conveyor belt needs for its clients with an office location in Central Java. PT. XYZ is currently getting a revenue deemed not high enough for its owners even though it has established business relationships with leading companies. Some of the causes that make the low revenue of PT. XYZ are lacking a number of clients to work with, the limited company resources, and the high cost of packaging goods. This research will focus on the issue of the lack of customers or clients to work with PT. XYZ. Using the Five (5) Whys method, the cause of the problems faced by the company is due to the lack of a number of clients owned by the company. The SWOT analysis method and research studies from previous studies will be used to determine the strategy to solve the problem. The analysis results show that the appropriate strategy for PT. XYZ is to expand the market. The company decided to open a new branch location in West Java province because West Java was considered to have good prospects for market expansion. In determining the suitable and appropriate city for PT. XYZ, this research will use Value-Focused Thinking (VFT) and Analytic Hierarchy Process (AHP) methods. The VFT method will be used to determine the criteria and alternative solutions used by the company in determining the best solution. The alternatives used in this research are Bekasi, Karawang, and Purwakarta. The criteria used in this research are four (4), and the sub-criteria used in this research are nine (9). The first criterion is cost with two (2) sub-criteria, namely, land purchasing cost and construction cost. The second criterion is workforces with two (2) sub-criteria, namely, labor force population and minimum wages. The third criterion is a supply chain with three (3) sub-criteria, namely, supplier network, logistics, and ports. Finally, the fourth criterion is facilities with two (2) sub-criteria, namely, availability of industrial site and availability of markets. The AHP method is used to determine the best alternative that the company can use to select the best new branch locations in West Java province. Obtained an alternative with the first priority ranking is Karawang city, with a weight of 39.7%. The priority ranking after Karawang is Bekasi and Purwakarta with 36.6% and 23.7%, respectively. In addition, sensitivity analysis was also carried out to check the stability of the priority ranking obtained using the perspective and regression method. From the two sensitivity analyzes, it is found that the results of the priority ranking analysis of AHP have good stability. Therefore, the recommendation given to PT. XYZ is to choose the Karawang city to determine the location of a new branch in West Java.