PROPOSED BUSINESS STRATEGY FOR PT WIJAYA KARYA BETON, TBK TO INCREASE REVENUE GROWTH IN THE CONCRETE INDUSTRY

• Main Author: Ardianto, David
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79979
• Institution: Institut Teknologi Bandung

Global economic conditions were slowing down starting in 2020 due to the outbreak of COVID-19, which spread throughout almost the whole world. It caused many cases of death in nearly all countries as well as an unstable economy. Amid the economic downturns and the risk of high uncertainty due to the pandemic, where Indonesia also significantly impacts these conditions, the government remains committed to carrying out national economic recovery programs in several vital sectors. On the other hand, the government is also developing infrastructure to leverage the economy to run normally. The National Medium-Term Development Plan for 2020 - 2024, under Presidential Regulation No. 18 of 2020, supports the strengthening of infrastructure, where there are 41 priority projects involving participation from the government, SOEs, and private companies. Generally, the construction industry will grow and develop to enhance national economic growth. This has become a domino effect in various related industries, such as the concrete industry as the essential suppliers for construction. The object of this research is PT Wijaya Karya Beton, Tbk as called (“WTON”), which is engaged in precast and ready-mix concrete manufacturing. From 2020 to 2021, WTON experienced a decline in revenue due to the pandemic and economic downturns. The challenge in the concrete industry is uncertainty for the construction market, with the number of projects declining from the year before the pandemic. The company is also threatened by local precast and ready-mix concrete players whose growth is aggressive. The abroad players also entered & expanded their business in Indonesia through investment project. The author conducts this research using qualitative methods. The data used are primary and secondary, with in-depth interviews involving internal company management to support this research. The framework in this research is AFI (Analyzing, Formulating, Implementing). Firstly, the author identified external scanning, using PESTEL model, Five Forces’ Potters, and supply-demand analysis. Internal scanning using ResourcedBased View, VRIO, and Value Chain Analysis. Secondly, the author formulated the strategy based on interview result, SWOT analysis, and Generic Business Strategy, as well as The Core Competencies – Market Matrix to create the business & corporate strategy. Lastly, the author concluded the key success factors in increasing revenue growth and execute the strategy through implementation plan. It created for the next three years along with the person in charge or executor for each business process.