PROPOSED BUSINESS STRATEGY TO IMPROVE PROFITABILITY AT PT. KURITA INDONESIA

• Main Author: Kahfi, Azhari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72106
• Institution: Institut Teknologi Bandung

Water is an integral part of human life, which is also used to support industrial needs. Currently, it is estimated that there are around 2.78 trillion m3 of surface water available in Indonesia, of which around 456 million m3 of water is treated and distributed to industrial and commercial groups to be used by various factories across the country each year. This large number encourages the growth of water treatment companies, which is in line with industrial growth and investment in Indonesia. With the growth of the water treatment industry, the challenges to survive in this industry are becoming more difficult. This also applies to PT. Kurita Indonesia, where in recent years, the company's profitability has not been optimal. Some of the factors that cause the problems are the increasingly price competition and the increasing trend of raw materials price. For this reason, research was conducted to understand the market of water treatment in Indonesia and to identify the differentiation factor of the company, thus the company can determine its competitive advantage and can be used to formulate as a new strategy to achieve a better profitability. The research was conducted by using qualitative research method, in which information was obtained from in-depth interviews with respondents, accompanied by direct observation and supported by data obtained from internal documents and other reports as the references. Internal and external analyses were conducted identify company’s differentiation potential that can be used as its advantages. The results showed that customers in industries tend to choose water treatment companies as their partners who can provide safety, reliability, and added value to their companies, especially from environmental standpoint and cost saving of the total operating cost. On the other hand, competitors of Kurita have not given so much concern about this added value. Based on this consideration, Kurita should create a strategy that focuses on value creation to customers and utilize its unique products that can be relied upon to provide value to customers. The company should also develop other technology such as the development of automation system based on the Internet-of-Things (IoT) to adapt and respond to future challenges.