PROPOSED BUSINESS STRATEGY TO GAIN SUSTAINABLE COMPETITIVE ADVANTAGE OF BURGERIFY
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...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/69989 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | 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. |
|---|