Proposed Business Strategy to Increase Profitability in Food & Beverage Industry (Case Study: Pt Ganesha Abaditama)

Abstract

Indonesia’s retail industry is one of the most promising due to its large population and rising purchasing power from middle-class individuals and millennials with increased spending habits. Food and beverages are part of Indonesia’s retail industry. Ganesha, a manufacturer, and supplier of packaged spices has seen sales decline in the last two years. Outperforming supermarket competitors to increase sales requires a new business strategy to gain competitive advantages. This study uses the AFI framework to design a new business strategy. Porter’s Five Forces, customer, and consumer analysis are used for external business analysis. Resource-based view analysis, core competencies gap analysis, and VRIO analysis are used to analyze the internal business environment. Interviews, questionnaires, and observation provided primary data. Websites, books, articles, and journals provided secondary data. The two data sets are combined for the SWOT analysis, and the TWOS matrix is used to develop strategies. Results show that underpricing rivals and increasing product value will increase market share. Innovating the supply chain, production, and technology helps lower selling prices. Innovating existing products, packaging, and variations helps add product value. However, product innovation requires more market research to determine consumer interest.