PROPOSED BUSINESS STRATEGY FOR ENHANCING THE MARKET COMPETITIVENESS OF ARGO PARAHYANGAN TRAIN FACING THE JAKARTA – BANDUNG HIGH-SPEED TRAIN

• Main Author: Hanifah, Ajeng
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75893
• Institution: Institut Teknologi Bandung

This comprehensive research delves into the competitive dynamics between the Argo Parahyangan train and the Jakarta-Bandung High-Speed Train (HST), both of which operate on the Jakarta-Bandung route. The overarching goal of this study is to make a well-informed and evidence-based decision concerning the continuation of the Argo Parahyangan train, while paying special attention to the key preferences and needs of its passengers. The research methodically examines several influential factors that impact a customer's choice of transport mode. These factors include accessibility, comfort, travel cost, safety, and travel time. The study identifies travel cost and time as the primary considerations for potential passengers when choosing between the Argo Parahyangan and the Jakarta-Bandung HST. These findings underscore the existence of two distinct, needs-based segments within the customer base. This study adopts a systematic methodology, involving seven steps of customer segmentation, coupled with an external and internal analysis of the company. These steps are designed to aid in the formulation of a suitable and effective business strategy. One of the critical revelations of this research is that discontinuing the Argo Parahyangan service could lead to a significant loss of cost-sensitive passengers, a key segment of the Argo Parahyangan's market. To address this potential issue, the study proposes an integrated cost leadership/differentiation strategy. This strategy incorporates various components, including optimizing train schedules, making service adjustments to improve customer experience, optimizing scenic views from the train to enhance the journey's appeal, increasing social media promotion to attract a wider customer base, frequently offering sales promotions to retain cost-sensitive customers, and establishing strategic cooperation with other companies to broaden the service value. Implementing this strategy would position PT KAI, especially for Argo Parahyangan train service to maintain a strong competitive footing in the market. Moreover, this research provides PT KAI with a detailed implementation plan, outlining initiatives for ensuring market competitiveness for the Argo Parahyangan train amidst the operations of the Jakarta-Bandung HST.