Proposed Strategy for the Future Growth of Wazbox

PROPOSED STRATEGY FOR THE FUTURE GROWTH OF WAZBOX

Kania Fitriani; Alibasjah Inggriantara

Master of Business Administration

School of Business and Management

Bandung Institute of Technology

Bandung, Indonesia

Kania.fitriani@sbm-itb.ac.id

Abstract – The idea of Wazbox as web-based application for laundry is to grab the opportunity on the proliferation of laundry and the increasing of internet user in Indonesia. The function of Wazbox is to make the owner of laundry easier in running their business. The issue of Wazbox is they have not yet got strategy for long-term planning, so that their sales don’t get the optimum results. To address these issue and formulate the suitable strategy for the future growth of Wazbox, author use qualitative data through observation, interview and literature study. By using external analysis and internal analysis it will produce SWOT of Wazbox. Factors in the SWOT are used in the calculation of EFAS and IFAS then applied to the IE matrix. The results is, Wazbox positioned in cell number two which is grow and build strategy. In grow and build strategy there are two options of alternative strategy. To determine the preferred strategy, used the QSPM calculation. From that calculation generated the intensive strategy (market penetration, market development, and product development). The author also using business model canvas to elaborate some solutions for Wazbox. In implementing the strategy, the author formulated some action plan in market penetration, market development, and product development for 5 years.

Keywords: Business Strategy, Intensive Strategy, Web-based laundry application

1. INTRODUCTION

The development of laundry business in big cities in Indonesia is growing rapidly, either the weight based laundry or premium laundry.  Small capital to open laundry business, especially in weight based laundry, make it quite attractive for people to open their own laundry services. High demand and the easiness of the supply, making laundry business is an extremely an exciting business. Looking for the potential growth in laundry business, make Wazbox has an idea to make application that can support in laundry business. Wazbox provide online application about registering and monitoring that can be used in every laundry either in weight based laundry or premium laundry. Thus, Laundry service can improve their efficiency in keeping records and minimizing fraud also avoid loss of clothes that washed in that laundry. Wazbox is one of SBU of PT.Pendulum Indonesia that found in 2014 in Jakarta.  

As a new start-up company, Wazbox has some challenges and issues in running its business. In its early stage of business many obstacle from external and internal environment can affect the business. The business issue that are often faced by new start-up company is they don’t have a long-term strategy plan in running their business. It also happened to Wazbox, they have not yet got strategy for long-term planning, so that their sales don’t get the optimum results. The sales of Wazbox fluctuate every months, there has only slightly increase in Wazbox’s sales, in fact there has decreased in sales in the last few months. It happened because they are running their business just go with the flow and don’t know the direction of the company will be in the future.

Table 1 Sales of Wazbox (id unit)

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1. BUSINESS ISSUE EXPLORATION

1. Conceptual Framework

By using conceptual framework, author can organized all the ideas to achieve the research’s purpose. The conceptual framework for Wazbox depicted in figure below.

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Figure 1 Conceptual Framework of Wazbox

Each step of the conceptual framework is explained below:

1. Problem Statement

Problem statement is description of the issue that need to be solved. The problem in Wazbox is there is no long term strategy to direct where the business will be in the future.

1. Data Collection

Data Collection that used in this research are observation, Interview & Questionnaire and Literature study.

1. External Analysis

Conducting an External analysis is helping formulate an effective strategy. By knowing the external environment, it will be known the opportunities and threats from Wazbox Company. The external analysis that author will using for this research are PEST analysis, Porter’s 5 forces, and Competitor analysis.

1. Internal Analysis

Internal analysis conducted to know the Strengths and weaknesses of Wazbox. For having an effective strategies, Wazbox should exploit and expand on its strengths and reduces its weaknesses. The internal analysis that author used in this research are VRINE Model and Business Model Canvas.

1. SWOT

After analyzed the External and Internal Environment of Wazbox it will obtained the Strengths, Weaknesses, Opportunities and Threats from Wazbox.    

1. Strategy Formulation

In strategy formulation, based on the analysis of Wazbox that has been conducted, the suitable strategies are developed.

1. Strategy Implementation

In this step, the selected strategies are planned to be executed.

1. External Analysis

1. PEST Analysis

Political Factor - Based on the regulation of the Minister of Communication and Information, Number 21/PER/M.KOMINFO/12/2010, NIX is an Internet Exchange Point (IEP) which is financed through contribution fund of Telecommunication Universal Service Obligation. IEP is the point where the routing of internet traffic gathered for interconnection. Network gateways will be installed in 33 Province in Indonesia. With the construction of NIX, the internet will be distributed to all provinces in Indonesia and increase the internet speed. With this regulation, the use of internet in Indonesia will be increase.

Economic Factor – The exchange rate of rupiah against dollar has decreased. At the end of 2012, 1 USD worth as 12.260 IDR. The decrease will affect the increasing prices of goods, such as electronics. Wazbox pay the VPS using dollar, so the increase of dollar against IDR exchange rate will affect the increase in cost of Wazbox.

Social Factor - Based on the survey conducted by Marketeers and MarkPlus insight, there is an increase in internet users in Indonesia every year. The number of internet user in Indonesia rise by 22% from 2012 to 2013 and estimated that user continue to rise until now.  Based on the same survey, 95% of the internet user accessed via mobile devices (notebook, netbook, laptop, smartphone, and tablet). Average increase in urban population from 2010 to 2013 amounted to 3.34% and the average increase in the urban internet users from 2010 to 2013 of 18.3%. This indicates the average growth of urban internet users 6 times faster than population growth. So that Internet users is a huge market potential and affect the appearance of business opportunities. This phenomenon can change the behavior of Indonesia people. The tendency of people to do work by online is increasing. It gives advantage to Wazbox because the internet market is growing.

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