IB Business and Management – HL
INTRODUCTION
Established in 1991 and founded by Mr. Yongky Wijaya, Pt. Jasuindo Tiga Perkasa is an Indonesia-based printing company. Produce two types of documents of two categories: non-security products (e.g. paper in different sizes) and security products (e.g. stock, banking, and private documents). It involves two sectors which are information technology services and distribution sector, which includes Pt. Jasuindo Informatika Pratama and Djakarta Computer Supplies.
Order custom essay IB Business and Management – HL with free plagiarism report
450+ experts on 30 subjects
Starting from 3 hours delivery
Mission of the company is to be number one integrated document industry and with this, it has positioned itself as one of Indonesia’s top five printing companies. The company is now doing
Work for companies like DHL, Lippo Bank, and government organizations. With the help of the latest technologies send from its associate in America and Japan Company fulfill consumer demands, the company has developed a high customer loyalty and company image. Because of home-based printing companies the company have problem in maintaining their customers
Because these are able to produce an imitation of the documents – a similar one but using lower technology, therefore poorer quality.
Customers, who are not reliant on the quality of their documents, have decided to continue printing their documents in cheaper home-based printing companies. This problem leads to the question, “How can Pt. Jasuindo Tiga Perkasa compete with other companies that are using home-based services that offers cheaper pricing?”
PROCEDURE
In order to analyze the current issue in greater depths, I have asked several documentations from the company’s marketing department, but they were unable to aid me with them. The company is as of this moment is still busy with important deals and deadlines to meet. However, the information offered is more than enough.
With the information that was given, I am able to carry out both a SWOT Analysis and ANSOFF Model. The two allows an assessor to see the strengths and weaknesses of the company and from there judge what the company should do next. Through the ANSOFF Model products are assessed and placed in the suitable market.
FINDINGS
Based on the information that is gathered from questioning the board of directors as well as the other colleagues, a SWOT Analysis and an ANSOFF model is created:
SWOT ANALYSIS
| STRENGTH
- High quality documents - Creative and innovative: no documents are the same as the previous one - Closer relationship with customers because using job production. - Enhanced technology that no other company has. - High quality raw material. - Higher knowledge of printing techniques and securing documentations - High documentation security |
WEAKNESS
- Often the company cannot be on time a 100% because of the changes of consumer demands. - The customers are given a clear view of all the processes, allowing them to know what is going on and how the product is made. Allowing other companies to copy the company’s transformational process for the product. |
| OPPORTUNITY
- The company is in a good market; there aren’t many other competitions. - The company has suppliers of machines with the latest technologies. This will allow the company to be ahead of the other companies in terms of technology as well as quality. |
THREAT
- Competition from other top five printing companies in Indonesia. Printing companies are competing against each other to win deals with big companies as well as government projects. The printing company who does the government projects is different every time – they would have to compete against each other either to maintain or to replace the current printing company on the project. - Other printing companies are also expanding and enhancing in technology – their competition is tight. |
From the SWOT Analysis above, the strengths and weaknesses as well as opportunity and threats of the company can be assessed and evaluated. According to the strengths, the company’s innovativeness and creativity as well as latest technologies, the company is able to market its products’ high quality and document security. The weakness is what this essay is trying to solve.
The company uses batch production as well as job production in transforming its products. Job production means that the company is working closely with its customers in achieving the product that satisfies them. Since this is the case, this allows the customers to see the processes and techniques used. Customers who don’t care about the quality of their printed documents, uses the process and techniques some place else cheaper. They go to home-based printing companies who offers cheaper price but cannot provide the same quality as PT. Jasuindo Tiga Perkasa.
| MARKET PENETRATION
(Increasing market share) The company must keep innovating and introducing new products to the market so that they can create a very high competition with its competitors. |
PRODUCT DEVELOPMENT
(Different product in the same market) The company aims to introduce new products and keep bill networking with the companies outside Indonesia to get new and advanced information on printing products and latest security products. The company uses international production and distributes its products locally – according to the needs of the customers. |
| MARKET DEVELOPMENT
(Same product different market) The company, now, is working with hospitals in printing the documents of the hospitals’ patients. Printing documents in good quality with maximum security. |
DIVERSIFICATION
The company has been involved in the food market. They recently opened a food court in Surabaya – something entirely new to the company. |
The company uses batch production as well as job production in transforming its products. Job production means that the company is working closely with its customers in achieving the product that satisfies them. Since this is the case, this allows the customers to see the processes and techniques used. Customers who don’t care about the quality of their printed documents, uses the process and techniques some place else cheaper. They go to home-based printing companies who offers cheaper price but cannot provide the same quality as PT. Jasuindo Tiga Perkasa.
The ANSOFF Model is used for strategic marketing planning, where four potential marketing strategies are mapped out. The model shows new versus existing products on one side and new versus existing markets on the other. It links marketing strategy with general strategic direction of the business.
Analysis and Evaluation
According to the information collected, the company should have no problem in being first and maintaining its position as it as the latest printing machines and high quality products. The problem is that the company is loosing some of its customers to cheaper home-based printing companies. These customers do not care about the quality of their printed documents – so they first order from the company to know the printing process and then print their other documents in other cheaper companies.
The SWOT Analysis shows that the strength of the company is in its high and advanced printing machineries and the quality of its printed and secured documents. If the company focuses on the minor customers as well, then it would be a waste of the advanced machineries and the high quality of raw materials. So it is wise to just deal with the larger companies who are highly sure of becoming loyal customers.
The company can set a higher standard of the customers’ orders, meaning, that in order to order from the company, they must order a minimum amount that the company has set. Therefore, the customers have to be serious in dealing with the company and not just purchasing to gain insight of the transformational process of the products.
In the ANSOFF Model, the company keeps innovating and creating new products in order to set a higher competition with the other printing companies. If the company decides to look after these customers, then it would make it harder for the company to move forward. The best thing to do is not to care for these customers at all and just focus on improving and satisfying the needs of well-established companies.
CONCLUSION AND RECOMMENDATION
In conclusion, the company should not compete at all with the home-based printing companies that are offering much cheaper pricing. Competing with them will just be an obstacle for the company to focus on larger goals and getting bigger deals. Referring back to the SWOT Analysis, the company has a lot of strengths to offer. Its high quality of raw material, advanced machines, and high quality products will be wasted if competing with home-based printing companies. By not taking note of these companies, the company will eliminate one of its weaknesses. Instead of competing with them, perhaps the company should just focus on constantly trying to improve its products and gaining customer loyalty.
These home-based printing companies are not a threat. Instead, there are other well-established printing companies, which are the ones that the company should really look out for. Caring for the minor companies will just add up to cost and will waste time. According to the SWOT Analysis, the only threat that the company is facing is only the other five renowned companies. However, it seems that the company should have no problem in competing with them as the company is advanced in technology and is well known for its quality.
Bibliography
Information cited from
Ms Encarta encyclopedia 2008
Samantha Jocelyn , Business_IA_Draft__2, October 22, 2007
IB Business and Management – HL. (2018, May 08). Retrieved from https://phdessay.com/ib-business-and-management-hl/Cite this Page
Run a free check or have your essay done for you
