Business Strategy Proposal for Travel Agency in Bandung, Indonesia PT Katarda Indo Global presented by Dhini Inassa slides designed by Dio Sundoro

1. DEVELOPING BUSINESS STRATEGY FOR
PT KATARDA INDO GLOBAL
TO SUSTAIN IN INDONESIA TOURISM INDUSTRY
D H I N I I N A S S A ( 2 9 1 1 7 1 3 5 )
Final Project Advisor
Priyantono Rudito, Ph.D
School of Business and Management
Master of Business Administration Program
Institut Teknologi Bandung
2019

2. T
A
B
L
E
O
F
C
O
N
T
E
N
T
INTRODUCTION
BUSINESS ISSUE
CONCEPTUAL FRAMEWORK
EXTERNAL ANAL
YSIS
INTERNAL ANAL
YSIS
BUSINESS SOLUTIOM
CONCLUSION &
IMPLEMETANTION PLAN

3. I
N
T
R
O
D
U
C
T
I
O
N
INTERNATIONAL VISITOR GROWTH
(JANUARY-DECEMBER 2017)
INDONESIA
VIETNAM THAILAND SINGAPORE MALAYSIA
29 %
22 %
8,7 %
5,8 % 4 %

4. I
N
T
R
O
D
U
C
T
I
O
N
The Development of Medium and Large Scale
Travel Services Business
2007 - 2011
Year
BPW
(Biro Perjalanan Wisata)
APW
(Agen Perjalan Wisata)
Tourist Travel Services
(BPW+APW)
Company
Average
Labor
Company
Average
Labor
Total
Growth
(%)
Total
Growth
(%)
Total
Growth
(%)
2007 655 - 11,00 1.159 - 9,00 1.814 -
2008 815 24,43 12,05 1.893 63,33 7,57 2.708 49,28
2009 952 16,81 12,35 1.803 - 4,75 6,51 2.755 1,74
2010 1.116 17,23 11,00 1.917 6,32 6,00 3.033 10,09
2011 1.120 0,36 12,00 1.918 0,05 7,00 3.038 0,16

5. C O M P A N Y P R O F I L E
PT KATARDA INDO GLOBAL

7. BUSINESS ISSUE
0
50000000
100000000
150000000
200000000
250000000
300000000
350000000
400000000
2016 2017 2018
SALES REVENUE OF PT KATARDA INDO GLOBAL
2016-2018
The total income was fluctuating
Changes in tourist behavior
The increasing level of competitor travel agent online in Indonesia

8. Business Strategy
Formulation
CONCEPTUAL FRAMEWORK
Data
Collection
Internal Analysis
External Analysis
SWOT
Analysis
Implementation
Plan
STP
Resource Based View (VRIN)
Value Chain Analysis
PESTLE,
Porter’s 5 Forces,
Competitor Analysis
TOWS Matrix
Corporate Level Strategy
Business Level Strategy
Functional Level Strategy
Bussiness
Issue
Observation
Study Literature
Focus Group Discussion (FGD)
Interview

9. EXTERNAL ANAL
YSIS
ANAL
YSIS

10. EXTERNAL ANAL
YSIS
Constitution also mentioned the government and regional
governments are obliged to provide tourism information,
legal protection, and security and safety to tourists.
Synergy of Penta Helix
(Academics, Business, Community, Government, and Media)

11. EXTERNAL ANAL
YSIS
Depreciation of the rupiah to encourage the growth of the
national tourism sector
Tourism sector ranks 3rd as the most significant foreign
exchange contributor under CPO and coal commodities. In
the last three years, since 2015, 2016 to 2017 foreign
exchange contributed from the tourism sector has increased
from USD12 billion to USD13 billion to USD14 billion.
2015 to 2017 ~ 12billion to 14billion USD

12. EXTERNAL ANAL
YSIS
Shift in consumption patterns in Indonesia
People prefer to tour (leisure) rather than use their money
to shop. It evidenced by several indicators of household
consumption growth in the third quarter of 2017.

13. EXTERNAL ANAL
YSIS
Analyzing the concept of Tourism 4.0, Artificial Intelligence,
Internet of Things (IoT), and Cloud as the most critical
technology for the future of the tourism industry.
Industry 4.0
on tourism sector

14. EXTERNAL ANAL
YSIS
Visa-free for 169 countries
VoA for 57 countries

15. EXTERNAL ANAL
YSIS
The Indonesian government has pledged to invest $1 billion
in reducing marine waste by 70 percent by 2025, as part of
the UN's Clean Seas program

16. EXTERNAL ANAL
YSIS
The only regulation in
accordance is Peraturan
Menteri Pariwisata,
Seni dan Budaya - Pasal 3
Customers want comfort
People can choose various travel packages
Many suppliers in the tourism industry
Online travel providers
The ease of opening a tour
and travel business
Many competitors in the field of tour and travel
HIGH
HIGH
HIGH
HIGH
HIGH

17. • Offer tourism service
• Established in 2015
• Location in Bandung
• Business structure PT
(Perseroan Terbatas)
• Have transportation
• Offer tourism service
• Location in Bandung
and Cianjur
• Business structure CV
(Commanditaire
Vennootscha)
• Strong brand image
(established in 2005)
• Offer tourism service
• Established in 2013
• Location in Bandung
• Office in Shophouse
EXTERNAL ANAL
YSIS
COMPETITOR ANAL
YSIS

18. INTERNAL ANAL
YSIS
Tangible Resources
2016 2017 2018
Profitability Ratios
Net Profit Margin 0,11 (0,06) 0,04
Return on Assets 0,04 (0,02) 0,01
Liquidity Ratios
Current Ratios 14,40 212,57 217,63
Quick Ratio (13,65) (177,89) (128,90)
Leverage Ratios
Debt to Total Assets 0,03 0,09 0,26
Activity Ratios
Total Asset Turnover 0,49 0,51 0,50
The current ratio increasing every year,
where companies can make long-term
debt payments and short-term debt
using existing assets.
The Profitability ratios
The level of effectiveness companies in
using assets to generate operating
profits are still not effective.
The Liquidity ratios
A large percentage indicates that the
condition of the company is unsafe or
has high risk.
The company can still handle sales with
the assets it owns.
The Leverage ratios
The Activity ratios
Resource Based Analysis
FINANCIAL RESOURCE

19. INTERNAL ANAL
YSIS
Resource Based Analysis
Tangible Resources
PHYSICAL RESOURCE
Town House Belleza, Jln. Cicalengka Raya
Kav. A5a Antapani Bandung
4 Operational Vehicale (2 Hiace, 1 Avanza, 1 Innova)

20. INTERNAL ANAL
YSIS
Resource Based Analysis
Tangible Resources
ORGANIZATIONAL RESOURCE
Commissioner
Accountant Administration Sales & Marketing Operation

21. INTERNAL ANAL
YSIS
Resource Based Analysis
Intangible Resources
REPUTATION
HUMAN RESOURCE
CAPABILITIES
 Established in 2015 in the Bandung
 Member of ASITA
(Association of Indonesian Tours and Travel)
West Java
 PT KATARDA INDO GLOBAL is a start-up company, so there are not too many employees,
there are some permanent employees and some freelancers.
 Employee recruitment directly under the CEO who chooses and decides
 The work culture that was running is a family culture and has dynamic working hours.
 PT KATARDA INDO GLOBAL
provides transportation rent, friendly team,
excellent service, and always improve the
product and services to make customer loyal, so
it has a good reputation with the costumers.

22. INTERNAL ANAL
YSIS
Resource Based Analysis
Intangible Resources
BUSINESS MODEL
Student
Family
Employee
Private company
Help in vacation
planning for
personal and group
by providing the
best service with a
variety of attractive
tour packages and
providing
transportation to
rent in support of
holiday or work
activities.
Walk in to office
Social Media
Word of mouth
Call or messages
Gift
Special price
Rent transportation
Fee of tour packages/ticketing
Event
Office
Employees
Transportation
Brand
Marketing & Sales
Promotion
Customer services
Hotel
Restaurant
Tourist attraction
Local guide/local
agent
Marketing & sales
Salary
Rent cost & maintenance office
Maintenance transportation

23. INTERNAL ANAL
YSIS
Core Competencies
VRIN ANAL
YSIS

24. INTERNAL ANAL
YSIS
Value Chain Analysis

25. • Competitive Prices
• Have own transport
• Good reputation in travel agents
• Good relationship with travel provider
• The company has legality in the form of a
Perseroan Terbatas (PT)
• Lack of marketing and sales
• Lack of brand awareness
• Limited of human resource
• Offline system
• The unstable sales growth, that fluctuating
every year
• Increased tourism growth
• Travelling become a lifestyle
• Technological developments
• The government support
• The development of technology
• The high level of competition
between travel agents
• The unstable economic conditions
• The unstable political situation in a
tourist destination
SWOT
ANAL
YSIS

26. ROOT CAUSE ANAL
YSIS
The development of tourism in Indonesia is increasing
Travel agent online is increasing
The number of internet user in Indonesia is increasing
Change in customer behavior
Unstable sales growth
Brand awareness is still lacking
Marketing that is still not optimal or maximal

27. BUSINESS SOLUTION

28. TOWS Analysis
Strengths (S) Weakness (W)
Opportunities
(O)
SO Strategies
1. Increase and add new tour packages at affordable prices
2. Often offers promotions with discount, cashback,
voucher and special pricing programs for some of the
products and services provided through digital marketing
3. Improve networking and collaboration with travel
providers such as hotels, restaurants, tourist attractions,
local travel agents
4. Increasing collaboration with government, private
parties, and travel platforms in offering products and
services
WO Strategies
1. A training program for the management team and join
seminars related to tourism, marketing, and sales
2. Increase compensation following the benefits of existing
human resources
3. Improve marketing and sales performance using technology
that has a low budget or is free and by utilizing support from
the government
4. Increase sales volume and reduce unnecessary costs in
operations by utilizing existing technology
5. Using technology in the ordering system of products and
services offered following the need and want of tourists
Threats
(T)
ST Strategies
1. Official customer service development by using
technology
2. Publish all customer reports or responses that are good
for social media or websites
3. Always follow the development of the economic and
political situation in the world and Indonesia in program
planning products and services offered
4. Make use of existing assets to be able to compete with
competitors in offering prices for products and services
WT Strategies
1. Evaluate the current marketing and sales strategy of the
company and comparative studies and research conducted by
competitors
2. Optimizing the use of free social media that internet base
platforms for marketing to increase sales and awareness
3. Creating operational standards (SOPs) on ordering systems
that make it easier for tourists

29. Corporate Level Strategy
Ticketing and rental car revenue
fluctuated between 2016 and 2018.
Every year, income from tour packages
has risen.
Taking advantage of multiple
opportunities to provide customers
with more values
Increasing business revenue,
particularly from each service offered.

30. Business Level Strategy
Using a low-strategy cost provider strategy
companies offer affordable prices with the best service quality.
Market the company to
international tourists.

31. Functional Level Strategy
Targeting Description
Geographic
Region: Bandung, Jawa Barat
Density: Urban and Suburban
Demographic
Gender: Male and Female
Age: 19 – 60 years old
Psychographic
Lifestyle: People who like traveling
Personality: Socialize, active
Social Economy: Middle – Upper
class
Social Classes
Occupation: Student, entrepreneur,
employee
Income: IDR 1.000.000 – IDR
50.000.000
STP ANAL
YSIS
Superiority in renting cars
Aanalyzing several scenarios from the
current customer path by conducting the
Omni Channel Strategy to increase the
number of customers and sales.

32. TOURISM VALUE CHAIN
Functional Level Strategy

33. WEB REDESIGN
SOCIAL MEDIA
travel packages offered
information on transportation rentals
access to ticket purchases
blogs on travel tips
tricks or blogs on a tourist area
tourist photo and video galleries customer
testimonials.
Scheduled content uploads
Feed Arrangement
Make a special hashtag
MOBILE APP
MARKETING STRATEGY
easier for people to access information
and book directly through the app.

34. OPERATION STRATEGY
HR & MANAGEMENT STRATEGY
FINANCIAL STRATEGY
 Finding the new coworker and new settings business
partners
 Time schedule
 Management team training program and attend
tourism, marketing and sales related seminars.
 Increase compensation in line with existing human
resource benefits.
 Looking for a project partner with the same vision and
mission to develop the company and conduct business
analysis.
 Add customer service for marketing staff
 Makes a budget that spent on car maintenance,
promotions and travel packages every month.
 Controls the administration's cash flow record at the
end of each month and is adjusted to the saved
money.

35. The company has legality in the
form of a Perseroan Terbatas (PT)
Competitive Prices
Have own transport
Good reputation in travel agents
Good relationship with travel
provider
CURRENT BUSINESS SITUATION
Lack of marketing and sales
Lack of brand awareness
Limited of human resource
Offline Registration
The unstable sales growth, that fluctuating every year
Increased tourism growth in the world, especially
in Indonesia
Travelling become a lifestyle
Technological developments
The government supports
The development of technology
The unstable economic conditions
The high level of competition between
travel agents
The unstable political situation in a
tourist destination

36. CORPORATE-LEVEL STRATEGY
Product Development
BUSINESS-LEVEL STRATEGY
A low-cost provider strategy
FUNCTIONAL-LEVEL STRATEGY
Marketing, Operation, Human Resource, and Financial Strategies
NEW BUSINESS STRATEGY

37. IMPLEMENTATION PLAN

38. No Action
Quantity
(Week)
Cost
(Rp)
Total
(Rp)
Marketing Strategy
1 Website redesign
*Contract
Aggrement
16,000,000 16,000,000
2 Instagram Ads 8 875,000 7,000,000
3 Facebook Ads 8 875,000 7,000,000
4 Line Ads - - -
5 YouTube Channel 16 5,000,000 80,000,000
6 Software/Application
*Contract
Aggrement
90,000,000 90,000,000
Operation Strategy
1
Finding the new coworker and
new business partners
- - -
2 Time schedule settings - - -
Human Resource Management Strategy
1
Planning training programs with
the management team
4 650,000 2,600,000
2 Looking for a project partner - - -
3
Adding employees to customer
service
- - -
Financial Strategy
1 Cost Control - - -
2 Estimate Cost - - -
Total Budget 202,600,000
BUDGET PLAN

39. T H A N K Y O U

40. Designed by :