OPTIMIZING BUSINESS STRATEGIES FOR SELLING SPLICING PRODUCTS FOR BELT CONVEYORS: ENHANCING COMPETITIVENESS IN THE ASIA-PACIFIC MARKET A CASE STUDY OF INSPIRARE LUXINER GROUP

• Main Author: Stella Sianipar, Nona
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85874
• Institution: Institut Teknologi Bandung

The Asia-Pacific region's rapid industrialization and growing mining activities present significant challenges and opportunities for conveyor belt splicing companies. Inspirare Luxiner Group (IL Group), a leading provider of high-quality belt conveyor splicing solutions, faces declining sales in the highly competitive Asia-Pacific mining market. The company's reliance on centralized manufacturing in Atlanta results in long lead times, high logistics costs, and insufficient customer support, hindering its ability to compete effectively against local players offering superior localized support and cost-effective solutions. This research analyzes the root causes of IL Group's declining sales and proposes strategic solutions to enhance its competitive edge in this dynamic market. Utilizing a mixed-method approach that includes qualitative interviews and quantitative surveys with clients and internal stakeholders, this research identifies key challenges: high logistics costs and long lead times due to centralized manufacturing in Atlanta, insufficient after-sales support, and integration difficulties with existing client systems. These factors have diminished customer satisfaction and allowed competitors offering more localized support to capture market share. The research reveals that IL Group's current standardized global strategy, characterized by centralized production and consistent product offerings, is not optimal for the Asia-Pacific market. This market demands a more localized and customer-centric approach, requiring adaptation to regional variations in customer needs, regulatory standards, and competitor dynamics. To address these challenges and achieve sustainable growth, this research recommends that IL Group adopt a multi-domestic strategy. By localizing production, IL Group can significantly reduce lead times and logistics costs, making their products more competitively priced and accessible. This strategic ii move aligns production closer to customer locations, improving supply chain efficiency and better catering to local market demands. Enhancing customer support infrastructure is another critical recommendation. Setting up regional service centers with skilled technical support teams will ensure timely assistance and stronger client relationships. This improved after-sales service is expected to boost customer satisfaction and loyalty, addressing one of the key areas of concern noted in the research findings. Continuous innovation is also emphasized as essential for maintaining a competitive edge. Investing in research and development will ensure IL Group’s products are compatible with emerging technologies and can meet evolving client needs. By incorporating smart technologies for predictive maintenance and integration efficiency, IL Group can make its RARE System more attractive to potential and existing clients. Marketing strategies and competitive positioning should focus on developing flexible pricing models that emphasize the long-term value and cost-efficiency of the RARE System. Highlighting the product’s durability and innovative benefits in targeted campaigns can help attract new clients and retain existing ones. Strategic partnerships with local companies can also enhance IL Group's market reach and operational efficiency. This study incorporates strategic tools such as SWOT and TOWS analyses, alongside Porter’s Five Forces, providing IL Group with a robust framework to navigate competitive pressures and seize growth opportunities. These tools will enable continuous assessment and adaptation to the rapidly changing market landscape, ensuring that IL Group remains a leading player in the industry. In conclusion, this research delivers actionable strategies for optimizing IL Group’s business operations in the Asia-Pacific. Through localized production, improved customer service, continuous innovation, and effective marketing, IL Group can enhance its competitive standing, strengthen customer relationships, and achieve sustainable growth in the region.