STRATEGY OLX AUTOS INDONESIA IN BUILDING BUSINESS USED CAR ECOSYSTEM

• Main Author: Raudatul Hayat, Fauzan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64933
• Institution: Institut Teknologi Bandung

The automotive industry is one of the mainstay sectors that significantly contribute to the national economy. It can be seen from its contribution to Gross Domestic Product (GDP) which reached 10.16% in 2017 and absorbed around 350,000 direct and 1.2 million indirect workers. Sales of used cars in Indonesia are motivated by the increasing needs of the Indonesian people and the increasing number of middle-class people. The increase in the growth of used car sales in Indonesia is inseparable from the rapid growth of the middle class in Indonesia. This growth is caused by a shift in the lifestyle of the Indonesian people, who regard the car as a reflection of social strata. However, transactions for buying and selling used cars in Indonesia have been carried out conventionally, which has complex problems such as being prone to fraud, lack of transparency between sellers and buyers, etc. OLX Autos is here in Indonesia to answer this problem by introducing the C2B (Customer to Business) concept. As a result, OLX Autos Indonesia experiences significant business growth every year. However, the total number of cars traded on the OLX Autos platform is only 0.1% per year compared to the total used car industry traded. The complex used car ecosystem in the multi-sided market makes OLX Autos experience various obstacles in its operations. The market share is small compared to the industry by various factors. It cannot be separated from internal and external factors: such as a business funnel that is not optimal, an indication of the sales team's lack of ability to negotiate, very high dependence on buyers, limited operational areas in Indonesia, still the low level of trust between sellers and buyers in online transactions, media promotions that are not optimal, and there are allegations of indications that the quality of bookings made by internal parties does not meet the expected standards. Apart from this, several other factors cause OLX Autos' market share to remain low because it is influenced by policies issued by the government, making it very difficult to intervene. This study uses a mixed method (using an exploratory, descriptive approach). As a result, it can qualitatively explain the OLX Autos strategy in building a used car business, but quantitative data also supports it. Thus, the strategy carried out by the OLX Autos has benchmarks, so it can be said that the strategy is appropriate and to the company's expectations. Based on the analysis carried out, there are at least several solutions offered to OLX Autos, such as: making efficient and selecting good talent, opening a home inspection service, opening a showroom/flagship, expanding to other cities in Indonesia, educating sellers and buyers, create and plan targeted promotional media, as well as to conduct internal audits. This study concludes that the cause of the low market share of OLX Autos compared to the industry is that the business funnel is not optimal due to many internal and external factors. The most basic step that OLX Autos Indonesia must take to increase its market share is to increase productivity, both employees and regionally. OLX Autos must also prepare short-term, and long-term plans for solutions to the low market share of OLX Autos Indonesia compared to the industry's market share.