PROPOSED BUSINESS STRATEGY FOR SMALL ARCHITECTURE FIRM IN TANGERANG: CASE STUDY TOP HOUSE

Abstract

Abstract Top House is a small architecture firm located in South Tangerang that focuses on design consultants for low and medium-rise buildings. The preliminary study has been conducted by interviewing the firm’s owner who also acts as the principal architect, to identify company problems. The results showed that the company revenue and net profit decreased significantly by about 20% from 2017 to 2019 and 75% from 2016 to 2019. Moreover, the consultancy service orders became small and decreased from 2015-2019. The decreased revenue and net profit were caused by a poor company and incomprehensive management system. To solve the problem using the external and internal environmental analysis. The external environmental analysis used the PESTEL, Porter Five’s Forces, and competitor analysis. Meanwhile, the internal environmental analysis used the VRIO framework, value chain analysis, and existing Business Model Canvas (BMC). Afterward, the data were summarized in the SWOT table for strategy formulation. It consisted of IE matrix and TOWS matrix as company level strategy and functional level strategy, then the new proposed Business Model Canvas (BMC). Based on the analysis of IE Matrix, the current company classification position is in cluster five. This indicates that the company should implement a hold and maintain business strategy with two options, namely market penetration and product development. Furthermore, pros and cons analysis is used to obtain the best strategy from these options. The company should implement a product development strategy by improving the existing product quality, namely green architectural requirements in the design concept and utilizing BIM technology. The TOWS matrix resulted in 11 functional strategies applied in the marketing, human resources, operations, and financial field.