CORPORATE STRATEGY FORMULATION IN EXPEDITION SERVICE COMPANY (STUDY CASE AT PT X)

• Main Author: Putra, Nicholas
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79404
• Institution: Institut Teknologi Bandung

PT X is a land freight service company. In 2020, PT X's revenue decreased significantly. This decrease was caused by the company's inability to maintain orders from its main customers. Dynamic environmental changes due to the Covid-19 pandemic have also tightened competition in this industry. Based on the preliminary interviews, PT X has not implemented strategic management. Literature studies show that companies need to implement strategic management in order to develop and adapt to a dynamic environment. Formulation of corporate strategy is needed by PT X as the initial stage in implementing strategic management. At the initial stage, identification of the company vision, mission, and values is an important component in strategy formulation. Strategy formulation begins with identifying and evaluating the company's environmental factors. Internal analysis is conducted using the Business Model Canvas (BMC) approach. External analysis is conducted using the PESTLE and Porter's Five Forces Analysis approach. Evaluation of the internal and external factors is done by using IFE Matrix and EFE Matrix. Based on the company's internal and external factors, an alternative strategy is formulated using IE Matrix and SWOT Matrix. IE matrix generates 2 alternative strategies for PT X. The SWOT matrix generates 17 alternative strategies for PT X. Based on the aggregation and validation process, there are 4 corporate strategies recommended for PT X. The determination of the company's corporate strategy priorities is conducted using QSPM. QSPM results show that the company's corporate strategy priorities are market penetration, product development, market development, and horizontal integration.