BUSINESS MODEL INNOVATION FOR JAFA INDONESIA JUARA DEALING COVID 19 PANDEMIC

• Main Author: Ramdany Sukmana, Wandy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64555
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic that has hit the whole world (including Indonesia) has resulted in health, social and economic crises. Jafa Indonesia Juara, one of the Small and Medium Enterprises in Indonesia that focuses on manufacturing sportswear, especially soccer shirts with a target of business consumers, is also experiencing an economic crisis due to the covid-19 pandemic. The significant drop in sales has put Jafa at its lowest point following the adjustments that need to e made for Jafa to survive this crisis and keep pace with the changing flow caused y the Covid-19 pandemic. Government regulations regarding health protocols related to the Covid-19 pandemic, closures of sports facilities, sports bans, and activities that result in openings have an indirect impact on the decline in the manufacture of jersey (especially football). On the other hand, the government also conducts independent sports for the community so that during the pandemic, fitness is maintained and is an opportunity that must be seized immediately. The increasing trend of personal or individual sports during the pandemic has increased the demand for personal sportswear. Jafa, with the existing capabilities, is more than sufficient to seize the opportunity. The decline in purchasing power also affects market prices and product quality. Some Jafa consumers, namely brand owners, choose to fulfill one of the resources in the jersey-making process to get lower production costs. This change makes the proportional value of Jafa no longer relevant. This research was conducted to find solutions to the problems faced by the company. The external analysis includes PESTEL analysis, which provides an overview of the general external environmental conditions of the business; Analysis of Porter's Five Forces Model defines the industry situation. The internal analysis uses VRIO and Business Model Canvas techniques to evaluate and analyze the company's internal activities. The next step after external and internal analysis is business model analysis. At this stage, the researcher will assess the current business model. The assessment will collect primary data from experts and industry players with illustrations in the SWOT analysis. Finally, the evaluation determines which components of the business model canvas have problems with the current business model. Next, continue with the TOWS matrix to formulate a business strategy and use the ERRC Grid (Eliminate, Raise, Reduce, Create) to create value innovations that ultimately develop a new business model canvas. Jafa Indonesia Juara's recommendation is to increase activities that will create new revenue streams by adding new segments and products or services. In addition, adjusting the value proposition prioritizes consumer desires and reduces costs that can be suppressed. The first three implementations of the recommendations eliminate existing value propositions that are no longer suitable for current consumer conditions and offer new value propositions in model innovation. Second, reducing high-cost resources and changing the wage system or price rates to increase production capacity but at a fixed cost. The last is adding new segments and products or services (both B2B and B2C segments). The expected positive impact of this strategic action is to generate new sources of income and increase revenue based on innovations made in both production and products or services.