PROPOSED BUSINESS STRATEGY FOR DISTRIBUTION CHANNEL C OF PT XYZ BANDUNG BRANCH

• Main Author: Abednego Rolland Doko, Victor
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67951
• Institution: Institut Teknologi Bandung

PT XYZ is one of the largest distributor and manufacturer of chemicals in Indonesia. Having a business-to-business model, PT XYZ have seven distribution channels that categorized based on the industrial application of chemicals. Distribution channel C is handling the sales of water and wastewater treatment chemicals. To support its distribution and sales, PT XYZ headquartered in Jakarta and have four branch offices located in big cities in Indonesia, including Bandung. The revenue of Distribution channel C of Bandung Branch declined since 2019 and declined profit margin since 2018. Several causes that already known are the Citarum Harum program, a program that developed by the Government as a fasttrack for the clean-up of heavily polluted citarum river. This program caused the market size of wastewater treatment chemicals grew significantly thus inviting newer competitors to join the market of wastewater treatment chemicals that turned the market into a red ocean market. Alongside the citarum harum program, Covid19 pandemic have heavily impacted textile industries, the key industries of Distribution channel C Bandung branch customers. In order to find out other causes of revenue and profit decline of distribution channel C of Bandung branch and to formulate business strategy that can increase profit margin and increase Distribution Channel C of Bandung branch position on the market, Author first did customer analysis and sales data analysis. Author also conducts external and internal analysis of Distribution channel C of PT XYZ’s Bandung branch. The General environment analysis, Industry analysis, and the Competitor analysis used as external analysis. The internal analysis done by conducting Resource Based View, and Value Chain Analysis. Author proposed Distribution C of Bandung branch to change its business-level strategy from cost leadership to differentiation. Business strategy formulated from this study is to develop an outsourcing business model for wastewater treatment chemicals that can be a competitive advantage that can help Distribution channel C of Bandung branch to increase its competitiveness in the market and improve its profit margin.