ANALYSIS OF THE COMPETITIVE STRATEGY OF PT BANK X

• Main Authors: , Irma Nuraini, , Ertambang Nahartyo, Ph.D., CMA.
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2013
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/125589/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=65758
• Institution: Universitas Gadjah Mada

Banking sector in Indonesia has been booming out from the growth in the assets and third party funds in commercial banks, especially the emerging of foreign banks that have been competitive to compete with local banks. Recently, Bank Indonesia has launched their new regulation regarding with the share ownership of the bank to mitigate ownership domination by a single party that has close relationship and negative connection with the implementation of good corporate governance in the banking industry. This regulation makes the competition among the banks in Indonesia become more competitive, especially for joint venture banks. By seeing the strong competition in the banking industry, an analysis is performed to analyze the bank�s competitive strategy through this research. PT Bank X is chosen as a joint venture bank for this research. An indepth interview and observation approach are adopted to achieve the research objectives. Analysis on the strategy of PT Bank X was using some tools such as Porter�s five forces and SWOT analysis. From the analysis, it was found that PT Bank X�s strategy is still effective to compete in the competition. However, there are still some weaknesses and improvements that PT Bank X needs to be fixed. One of the main concerns is the core banking system (Corina) which the functions have not yet accommodated the day-to-day operational activities for the bank. High expenses also make the bank generate small profits and showed that the bank is inefficient. Branding is also one of the weaknesses that the bank needs to improve to help the selling activities and trust from customers. To complete the research, a list of recommendation is also drawn up in an attempt to improve PT Bank X since there still some improvements need to be implemented in order to increase market share, profits, and gain a competitive advantage over its competitors and to attain a state of sustainable growth.