RECOVERY & GROWTH STRATEGIES FOR A MICE COMPANY AMIDST THE COVID-19 CRISIS AND POST-PANDEMIC IMPLICATIONS

• Main Author: P Wilhelm Huppe, Markus
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68216
• Institution: Institut Teknologi Bandung

In the early months of 2020, the COVID-19 disease, a new coronavirus called SARS-CoV-2, spread at alarming levels. The World Health Organization (WHO) declared this virus as a pandemic. Shortly after, the Indonesian government declared the situation as a national disaster. Over the past two years new variant’s emerged and rapidly spread. Companies faced disruptions, and some even had to close as strict measures involving distancing, travel bans, the ban of gatherings and lockdowns were enforced. These measures also endangered the profitability and business continuity of the meetings, incentives, conferences and exhibitions (MICE) sector. The purpose of this paper is to present a study of the business issues and implications faced by a Professional Conference Organizer (PCO) named Royalindo, a MICE company which, like other MICE companies, faced difficulties amidst the pandemic which at the time of this writing has not yet ended. For these issues and implications, this study also developed and reviewed relevant business strategies towards recovery, adaptation and growth in the current and the post-pandemic era. In general, the studied MICE companies were faced with revenue decrease, fierce competition and uncertainty in planned events. To survive, these companies had to reduce manpower and salaries and sought capital for cashflow. In addition, the changed market dynamics and the user behavior, the shifting to virtual events, poses a threat to the need for MICE services. This is why pricing, segmentation focus and resilience strategies were evaluated against the current and the expected post-pandemic conditions. Some key outcomes and recommendations of this study include expanding focus to a broader segment, diversification, research & development, and contingency plans and reserves in form of liquid assets. The research conducted in this paper utilizes a mixed method of internal and external analysis such as PESTEL, Porter’s Five Forces, VRIO Model and Porter's Value Chain. This is followed by a mixed method of a quantitative and qualitative research. The quantitative data is generated through two sets of questionnaires aimed at the users of MICE services and the MICE companies. This will allow a multi-perspective analysis. The qualitative data is generated through interviews with multi-stakeholder industry experts, directors and senior managers. In addition, reports and journals, as secondary data, concerning the MICE sector worldwide amidst the pandemic were analyzed. Based on the analyses and research a SWOT & TOWS was conducted. Finally, utilizing the Hambrick & Fredrickson’s Strategy Diamond relevant recommendations and a timeline could be formulated.