PROPOSED CORPORATE STRATEGY AND ITS IMPLICATION FOR PT GARUDA INDONESIA
The presence of the Covid-19 pandemic has not only had an effect on health on a global scale but has also had an effect on the industry of the entire community. It was one of the most difficult times for the aviation industry because the aviation industry was one of the industries that was hit the h...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/70853 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The presence of the Covid-19 pandemic has not only had an effect on health on a global scale but has also had an effect on the industry of the entire community. It was one of the most difficult times for the aviation industry because the aviation industry was one of the industries that was hit the hardest. This caused it to be one of the darkest times in the aviation industry. The national airline of Indonesia, Garuda Indonesia, was significantly impacted as a result of this. It wasn't long before Garuda Indonesia ran into financial trouble; roughly two years after the COVID-19 pandemic, the airline was facing the possibility of going bankrupt due to their mounting debt. In a general sense, businesses that are in possession of an advantage have a better chance of surviving challenging conditions and the pressures of competitive pressures in an industry. Because of this, Garuda Indonesia needs to assess their position in the industry, conduct an audit of the company's internal and external conditions, and figure out how to make the most of their competitive advantage.
This study's information was gathered from aviation-related literature, observed, and validated through interviews. The collected data is used as the foundation for analyzing the company's external and internal environments, developing a company direction strategy, and assessing the quality of subsidiaries through a portfolio strategy. External conditions provide attractive opportunities for the aviation industry, especially for Garuda Indonesia; however, there are internal issues that undermine Garuda Indonesia's, such as ineffective and inefficient business practices, a lack of monitoring and control functions, and an excessive level of diversification from the company's core competency. This ultimately worsened the situation of Garuda Indonesia, which was mired in a crisis and faced bankruptcy.
Based on the results of the analysis, Garuda Indonesia's position is in the retrenchment quadrant, in which the company needs to implement a survival strategy, but still compete with limited resources. In order to return to prime condition, Garuda Indonesia needs to make several improvements such as 1) resource rationalization, 2) cultural transformation, 3) branchless business model, and 4) network optimization and cooperation.
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