PROPOSED BUSINESS STRATEGY TO INCREASE PROFITABILITY IN FOOD & BEVERAGE INDUSTRY (CASE STUDY: PT GANESHA ABADITAMA)

• Main Author: Rita Putri, Ganesya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71164
• Institution: Institut Teknologi Bandung

The retail industry in Indonesia is still considered to be one of the most promising in Indonesia due to its sizable population as well as the rising purchasing power because of the growing number of middle-class individuals, and millennials with increased spending habits. One of the product categories that make up the retail industry in Indonesia is the food and beverage product category. The food and beverage industry are one of the mainstay manufacturing sectors, making a major contribution to national economic growth. As one of the companies that manufactures and supplies spices to various retail supermarkets in Indonesia, PT Ganesha Abaditama has experienced a decline in sales at retail supermarkets in the last two years. Outperforming competitors in retail supermarkets is the solution to increase the sales, hence new business strategy to gain competitive advantages is needed. This study uses the AFI framework, which starts with analysis, formulation, and implementation to design a new business strategy. External analysis of the business environment is carried out using PESTEL, Porter's Five Forces, customer analysis, consumer analysis, and competitor analysis. Meanwhile, the analysis of the internal business environment is carried out using resource-based view analysis, core competencies gap analysis, and VRIO analysis. All data were collected using qualitative and quantitative methodologies. Primary data were collected from interviews, questionnaires, and observation. While secondary data were collected from websites, books, articles, and journals. The two sets of data are combined as the basis for the SWOT analysis, and the TWOS matrix is used to formulate strategies. The results show that to increase market share growth, a strategy of underprice rivals and increasing product value is needed. The step to provide lower price to customer is carried out by innovating on the process to gain efficiencies in the supply chain, production, and technology. Meanwhile, adding product value is carried out by innovating on existing products, packaging, and creating new product variations. Market research to determine consumer interest with a larger number of respondents also needed to be carried out as a basis for product innovation. That way, PT Ganesha Abaditama can continue to compete in the food and beverage industry.