Title: EVALUATION OF COMPETITIVE STRATEGIES TO CREATE SUSTAINABLE COMPETITIVE ADVANTAGE CASE STUDY: PT POLOWIJO GOSARI

Author: CAECILIA RIRIS WIDYANTARI

Affiliations : Master of Management Science Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

The fertilizer industry in Indonesia, especially magnesium-based fertilizer and compound fertilizer, has developed rapidly as shown by the increasing number of fertilizer producers in Indonesia. PT Polowijo Gosari is a national private business entity engaged in the fertilizer sector which produces magnesium-based fertilizer and continues to develop its products & markets by producing compound fertilizer. PT Polowijo Gosari was initially a pioneer who dominated the magnesium-based fertilizer market. However, the company's lack of responsiveness in responding to growing market needs has opened up opportunities for the emergence of new entrants who are starting to threaten the company's competitive advantage. Meanwhile, on the other hand, the intensity of competition in the compound fertilizer market for the plantation sub-sector also continues to increase from year to year. In the period 2002-2011, the average percentage growth in company net profit experienced negative growth and tended to fluctuate. The company's profit growth trend is not in line with the growth trend in market needs. Therefore, this research aims to evaluate and reformulate PT Polowijo Gosari's competitive strategy to create a sustainable competitive advantage. The method used in this research is a qualitative research method with a case study research strategy, because this research is an in-depth investigation of natural phenomena that occur at PT Polowijo Gosari, where the results of this research place more emphasis on meaning and not generalizations. Interpretation of all qualitative findings supported by analysis of the EFE Matrix, VRIO Framework, IFE Matrix, and IE Matrix shows that the company's position is in the Harvest/Divest quadrant which illustrates that the competitive strategy chosen and implemented by PT Polowijo Gosari is not appropriate because it does not meet the criteria. consonance, advantage, and feasibility. In line with this analysis, the results of the GE/McKinsey Multi-Factor Portfolio Analysis show in more detail the position and recommendations for competitive strategy options for each product based on the market attractiveness index and competitive position index as follows: Harvest: Dolomite, Sulfomag and Kalphos fertilizer; Monetize: NPK Tablet/Briquette and NPK Granule fertilizer; Protect Position: Super Dolomite fertilizer; Improve Position: Premium Dolomite fertilizer; Invest to Grow & Improve Position: Magplus fertilizer.

Keywords: Competitive Strategy/Business Strategy, Sustainable Competitive Advantage, IE Matrix, GE/McKinsey Multi-Factor Portfolio Analysis, and Fertilizer Industry

 

Sources: http://repository.unair.ac.id/37221/