PROPOSED BUSINESS STRATEGY TO GAIN SUSTAINABLE COMPETITIVE ADVANTAGE OF BURGERIFY

• Main Author: Naufal Kamal, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/69987
• Institution: Institut Teknologi Bandung

The decline in the purchasing power of the Acehnese people is very pronounced at this time, especially when Aceh is well-known as the poorest province in Sumatra. Exposure to the COVID-19 pandemic worsened the region with rising unemployment and layoffs. At that point, the creative industry thus is highly supported by the government to overcome these problems, and the food service industry is no exception. Before being put on hiatus in early 2021, Burgerify operated for at least half a year in Banda Aceh. Although the business thinks it can provide quality burgers at an affordable price and expect to attract targeted customers successfully, it somehow failed to retain and acquire customers when the business discovered the target segment apparently comes from customers with low purchasing power. Therefore, Burgerify needs a proposed new strategy to gain a sustainable competitive advantage in serving its targeted customer segment and compete with its competitors from highest threat to lowest threat in order: secondary competitors (kebab businesses), direct competitors (premium burger businesses), and indirect competitors (tier-2 burger businesses). These new strategies are formulated based on external analysis covering Porter’s Five Forces, internal analysis covering Business Process and VRIO Analysis. Then, all the necessary findings from the external and internal analysis are gathered to construct the root-cause problem using Fishbone Diagram. The root cause problem of this study is “gaining sustainable competitive advantage in a low consumer purchasing power.” In response to the problem statement, the writer proposed Porter’s Generic strategy, Business Model Canvas, and a strategy-proof tool called Strategy Diamond Model. As a result, a cost-focus strategy is proposed, and leads to a new business unit plan focusing on B2B. The new business will then act as supplier for the B2C unit, which is expected to go franchise afterward.