The Business Strategy Analysis …… (Regina Inderadi et al.) 31 THE BUSINESS STRATEGY ANALYSIS OF A FORWARDING COMPANY IN INDONESIA Regina Inderadi1; Larasati Adiannisa2; Nugroho J. Setiadi3 1,2,3 Management Department, BINUS Business School-Undergraduate Program Jl. Hang Lekir I No. 6, Senayan, Jakarta 10270, Indonesia 1regina@binus.ac.id; 2larasati.adiannisa@binus.ac.id; 3nugroho.setiadi@binus.ac.id ABSTRACT The aims of this research were to identify key internal and external success factors within the forwarding industry and the organization, and to analyze competitive positioning of a forwarding business in Indonesia in order to obtain its optimal business strategy. Research method applied was qualitative approach using case study. Respondents consist of 20 managers at Jakarta. Data collection was conducted in October 2017 at Jakarta using questionnaire distribution. The first stage of data analysis mapped company's strengths and weaknesses into Internal Factor Evaluation (IFE) matrix, mapped market opportunities and threats into External Factor Evaluation (EFE) matrix, and mapped competition into Competitive Profile Matrix (CPM) with the application of Expert Choice Software. The results of the external and internal audit were used to generate alternative strategies by applying a Business Competitive Position Matrix, Grand Matrix Strategy, and BCG Matrix. Three alternative strategies were selected from matrices conducted prior to Quantitative Strategic Planning Matrix (QSPM), namely adding the new sub-business unit to serve delivery service for small-sized goods (product development), conduct IT innovation to open opportunities in entering E-Commerce business (market development), and liquidation. The outcome is a product development strategy, which is indicating that the best strategic decision for the future sustainability in the business competition is to add new sub-business unit in small-sized goods delivery. Keywords: business strategy, business competition, forwarding business, logistics INTRODUCTION Development of globalization has enabled a free movement and has eliminated trade barrier between countries which make the international transactions easier (Buckley & Ghauri, 2004; Hartungi, 2006). With the increase of interactions between nations, lots of national and multi-national companies are having cooperation and collaboration with companies from other nations and other continents. In the transaction between countries, export and import services are substantial. Export and import activities are necessary to ensure the continuity of products or goods delivery between countries and continents, namely Africa, Asia, Europe, America, Oceania, and Australia. Without export-import services, international trading will not be as advanced as nowadays. According to Indonesia Central Bureau of Statistics, Indonesia’s economic pace keeps changing due to the evolvement of technology and information systems, which are much more accessible by citizens. Indonesian Government supports export-import activities established by private institutions to stimulate economic pace in Indonesia. As stated in Indonesia Constitution 2014, government and local government have the duty of encouraging the development and protection of staple goods production and essential goods within the country to fulfill the national requirement. Furthermore, it is also stated in article 95 that government is responsible for establishing national logistics development to assure staple goods and essential goods availability. mailto:regina@binus.ac.id mailto:larasati.adiannisa@binus.ac.id mailto:nugroho.setiadi@binus.ac.id 32 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 Logistic services are formally stated in the constitution as “freight forwarding”. The companies that are included in this category of industry are cruises (such as APL logistics, NYK logistics, Damco logistics, and OOCL logistics), land transportation or trucking (such as Iron Bird logistics and BCS logistics), warehousing (such as BGR logistics and Kamajaya logistics), courier freight business (such as DHL logistics, JNE logistics), and air services (such as Garuda logistics and Lion parcel). As an archipelago country, for interconnection between islands and cities, Indonesia really needs freight forwarding business that can maintain companies’ businesses needs particularly for the reason that either Business to Business (B2B) companies or any other companies undergo large-scaled trading transaction. And for this type of businesses, freight forwarding service is crucial especially for goods with weight up to 100 kg. The types of trading goods are varied, including special handling goods either in the delivery or in permission, for example, airplanes’ spare parts, medicines, animals. One of the oldest and most trusted international companies in Indonesia in trading transportation, export-import, and domestic delivery is the main focus of this research. In addition, some forwarding service companies which execute their business activities by applying different kinds of the delivery method such as trucks for landline, airplanes for airway, cruises for sea line, are also the main objects of this research. Prima International Cargo, Ltd., for instance, owns a modern facility and network for over 1500 cities worldwide. The standard operating procedure of this corporation refers to ISO 9001/2008 issued by SAI Global Australia. All permissions either through The International Air Transport Association (IATA), International Federation of Freight Forwarders Associations (FIATA), PPJK (customs expert), EDI Indonesia, or Gudang Berikat, are required to transport the shipment. Due to unstable global market and market condition, such as threats from sea line, uneven infrastructure development for landline, high taxes for aero freight, it is indicated that these are huge threats for both small and large freight company (Czinkota & Ronkainen, 2005; Sudrajat et al., 2017). Many companies in this field are directly affected by the current market situation, which can be seen from the decreasing number of delivery service users in three recent years. Moreover, the current low competitiveness of freight forwarding businesses in Indonesia has encouraged to conduct research in purpose to explore the issues and to identify the best model to resolve it. Conceptually, company’s level of competitiveness can be leveraged by reconstructing its competitive advantage, capability, and its resources (Ireland, Hoskisson, & Hitt, 2015). Previous researches prove that competitiveness can be improved through performance improvement (Huda & Wibowo, 2013; Monteiro, Alves, & Sameiro-Carvalho, 2013) and innovative-capability (Tuominen & Hyvonen, 2004). However, these studies only determine two connectivities, namely connection between innovative capability with performance, innovative capability with competitive advantage and relation between performance and competitive advantage. In addition, competitive advantage can be defined by strategic management theory with a dynamic-capability approach (Volberda & Elfring, 2011). A largest and oldest forwarding company in Indonesia also experiences a dramatic decrease in the number of users that is dropped 50% from previous year’s number. This threat is affecting the company’s sustainability if the issue is not managed well. This condition is automatically categorized as a declined company in Product Life Cycle graphic. At this stage, sales will decrease constantly aligned with the profit. Therefore, to sustain and compete in forwarding industry, top management of the companies need to strategically think and implement the best strategy for the unstable condition in the market. A company must develop its effective strategy to tackle these issues. A company’s ability to compete within an industry in the long term depends on its ability to develop an innovative business model (Gassmann, Frankenberger & Csik, 2014). Innovation requires resources to be strategically allocated to develop and utilize productive resources (Lazonick, 2015). The Business Strategy Analysis …… (Regina Inderadi et al.) 33 According to Burgelman, Christensen, and Wheelwright (2009), typically innovative strategies in business units are related to a new product or service or new delivery and production system, which can be categorized into the terms of market entry, technological leadership or followership, the scope of innovativeness, and rate of innovativeness. Competitiveness is defined as the ability of a company in utilizing its resources or factor of production in innovative and productive way to increase output number, increase market share, supply product or service, respond the market, win the competition, and create customers value (Liu et al., 2010; Chikan & Gelei, 2010; Altomonte, Aquilante, & Ottaviano, 2012; Zueva & Shakhnazaryan, 2014). Competitiveness is viewed as a static concept where a company can be competitive in particular time, however, in the dynamic business situation, flexibility, agility, and adaptability have become important resources. Barney, Wright, and Ketchen (2001) have conducted several studies about the relations between competitive resources and performance, which sustaining in the high- turbulence market is much relying on competitiveness ability. Feurer and Chaharbaghi (1994) have stated that competitiveness is illustrated as a multidimensional and relative concept. However, competitiveness and competitive advantage are different in definition. Competitive advantage is a center of strategic management study and viewed as a crucial aspect of company’s performance. While competitiveness is indicating a company’s capability in designing, producing, and marketing their products better than its competitors, where the capability can be evaluated by price, quality, and the technology factor (Depperu & Cerrato, 2013). There are several techniques for building competitiveness. Strengths, weaknesses, opportunities and threats analysis are most effective when it is part of a wider management audit (Kourdi, 2009). According to Ireland, Hoskisson, and Hitt (2009), an opportunity is a condition in the general environment that, if exploited, help a company achieve strategic competitiveness, while a threat is a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness. Additionally, the Competitive Profile Matrix (CPM) identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position (David, 2011). On the other hand, understanding how to leverage the firm’s unique bundle of resources and capabilities is a key outcome decision makers seek when analyzing the internal organization (Ireland, Hoskisson, & Hitt, 2009). They also suggest that resources, capabilities, and core competencies are the foundation of competitive advantage. Resources consist of financial, technological, and human resources, while capabilities consist of distribution, marketing, management information systems, and so forth, and core competencies consist of innovation and service and so forth. Nevertheless, the questions are what the organization’s strengths and weaknesses are and how could the organization improve them. Additionally, another question is to what extent does the company utilize its opportunities and avoid its threats, and how can the company develop or offer new or existing services. It is also crucial to find out what are the factors that represent the company’s competitive position that enables the company to select the most optimal strategic decision. To answer those questions, several stages should be applied. The matching stage of strategy formulation covered in this research consists of Business Competitive Position Matrix, Grand Strategy Matrix, and BCG Matrix. These tools rely upon information derived from the input stage to match external opportunities and threats with internal strengths and weaknesses (David, 2011). In the end, there is only one analytical tool in the literature established to define the relative attractiveness of feasible alternative strategies, which is called as Quantitative Strategic Planning Matrix (QSPM). Constructing a QSPM involves a series of six steps (David, David, & David, 2016). The first step is to list key external and internal factors from the input stage, then continued with providing weight for each of the factors. The next step is to list potential actions, which these actions will be selected only one. Attractiveness score is given to the factor, which is impacting the strategy. 34 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 The Total Attractiveness Score (TAS) indicates which strategy should be chosen. However, despite the limitations of QSPM analysis, it enables marketers and businesspersons to assign numerical values to reveal judgment as to the relative importance of factors and the relative attractiveness of strategies (David, David, & David, 2016). Importantly, through the stages have described, it is expected that every freight and forwarding businessperson can take advantage of the results of this research as a foundation to formulate their business strategy. METHODS To sustain in the unstable and dynamic business environment in Indonesia, a forwarding company must pay attention to environmental conditions by utilizing its internal strengths and improving its weaknesses. However, the question is to what extent the company has avoided the threats and taken advantage of market opportunities. How the company can advance its internal strengths such as resources and core competencies to restore its weaknesses in order to sustain in the competition. Furthermore, another crucial question is to what extent the company can apply the best business strategy to increase its competitiveness. This research is conducted by qualitative research where data are obtained by using the questionnaires containing questions to the respondents. The respondents were top management people including managers from one forwarding company as the main focus of this study. To compare its competitive position, four other forwarding companies’ managers were also interviewed which made the total respondents were 20 people. This data is taken on October 2017. The first stage of data analysis is to map company's strengths and weaknesses into Internal Factor Evaluation (IFE) matrix, map market opportunities and threats into External Factor Evaluation (EFE) matrix, and map competitors into Competitive Profile Matrix (CPM) with the application of Expert Choice software. The results of the external and internal audit are used to generate the alternative strategies by applying a Business Competitive Position Matrix, Grand Matrix Strategy, and BCG Matrix. Three alternative strategies are selected from matrices conducted prior to Quantitative Strategic Planning Matrix (QSPM). Scopes of data retrieval are internal aspects of the company related to strengths and weaknesses, and external aspects related to opportunities and threats. Moreover, Business Competitive Position Matrix is also used. Figure 1 shows the research method stages. Figure 1 Stages in Strategic Decision Making of a Forwarding Business in Indonesia Stage 1 The Input Stage: EFE Matrix, IFE Matrix, CPM stage 2 The Matching Stage: Business Competitive Position Matrix, BCG Matrix, Grand Strategy Matrix Stage 3 The Decision Stage: QSPM The Business Strategy Analysis …… (Regina Inderadi et al.) 35 RESULTS AND DISCUSSIONS There are three steps in this process; they are input phase, matching phase, and decision phase, to analyze evaluation stages and strategy formulation to achieve competitive advantage (Barney & Hesterly, 2015; David, 2015). At input phase, External Factors Evaluation (EFE) matrix and Internal Factors Evaluation (IFE) are applied as the input of evaluation. Collected external data is associated with politics, economics, social, technology, government, law, environment, and industry competition that are extracted from respondents. These factors will be weighted and scored based on respondents’ rating toward the company. On the other hand, IFE matrix is applied to evaluate internal factors, which are relevant with strengths and weaknesses of the company. In this research, data and internal aspects are gathered from the functional unit in the company, including management, finance, human resources, operational, and other internal function within the organization. These factors will be weighted, rated, and scored in accordance with respondents’ perspectives and opinions. Table 1 and Table 2 exhibit the calculation result of IFE and EFE matrix from Prima International Cargo, Ltd. as the main focus of the study of forwarding company in Indonesia. From Table 1, the average weighted score is 2,593; this means that Prima International Cargo Ltd. is internally strong (weighted score is above average 2,5). However, from external aspects, as seen in Table 2 EFE Matrix, it can be concluded that average weighted score is 2,476. This score is below industry average score (2,5) and shows that Prima International Cargo Ltd. is externally weak as a forwarding company. Table 1 IFE Matrix Result No. Key Internal Factors Weight Rating Score Strengths 1 Prima International Cargo Ltd. has 43 years of experience in Freight Forwarding industry. 0,092 4 0,368 2 Prima International Cargo Ltd. is a member of IATA since 1988. 0,088 4 0,352 3 Having a worldwide network by being a member of World Air Cargo Organization (WACO) exclusively since 1976. 0,121 4 0,484 4 Prima International Cargo Ltd. has some features and functions such as Warehouse, Trucking, Distribution, and so forth. 0,111 3 0,333 5 Prima International Cargo Ltd. has been certified by PPJK and EDI Indonesia. 0,079 4 0,316 Weaknesses 1 Software system of Prima International Cargo Ltd. is not well accommodated IT development in Freight Forwarding and Logistics field. 0,099 1 0,099 2 Prima International Cargo Ltd. is experiencing difficulties in finding potential personnel with expertise in Freight Forwarding and Logistics. 0,115 2 0,23 3 Prima International Cargo Ltd. is having ineffective operational branches. 0,094 1 0,094 4 Profit reached minus point in 3 recent years. 0,085 1 0,085 5 The weak brand image of the company 0,116 2 0,232 Total 2,593 Table 2 EFE Matrix Result No. Key External Factors Weight Rating Score Opportunities 1 Increased in number of production for both medium and large industry 0,104 3 0,312 2 E-commerce continues to rise in emerging markets, creating more opportunities in developing and increasing company’s revenue. 0,097 3 0,291 36 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 Table 2 EFE Matrix Result (Continued) No. Key External Factors Weight Rating Score Opportunities 3 Infrastructure development that connecting areas and cities within Indonesia is increasing and enabling development of new businesses. 0,126 4 0,504 4 Increased in number of shipment through Air Freight in recent year 0,114 4 0,456 5 Government policy issuance about regulation, ease of doing business and investment and trading which initiating opportunities to do business expansion and joint venture with foreign investment. 0,08 3 0,24 Threats 1 Government policy for Foreign Investment in Indonesia has made Multinational Company with large capital entering freight forwarding business competitively from upstream to downstream. 0,09 1 0,09 2 With the policy and ease of investment and ASEAN economic society at the end of 2015 and beginning of 2016, there will be more similar businesses enter Indonesia’s market. 0,107 1 0,107 3 Indonesia may join Trans-Pacific Partnership in order to liberate trading to open more opportunities to foreign investors. 0,088 1 0,088 4 Export-import situation has been unstable since the last 5 years. 0,08 2 0,16 5 Express courier service company has begun to expand their business into large scale shipment 0,114 2 0,228 TOTAL 2,476 Furthermore, to assess business competition profile of forwarding business in Indonesia, Competitive Profile Matrix (CPM) is applied to identify key competitors based on strengths and weaknesses and connect them with company’s strategic position within the market (Khan, Alam, & Alam, 2015). In this process, Prima Cargo international Ltd. is compared with two competitors in the same industry. In conducting CPM, key success factors consist of both key internal and external factors. Table 3 shows that there are two main competitors of Prima Cargo International Ltd., namely Cardig Aero Service Ltd. and Samudra Ltd. Weighted score of Cardig Aero Service is 3,713 while Samudra Ltd.’s weighted score remains 3,269, and Prima Cargo International Ltd. is 3,576. In conclusion, Prima Cargo International’s competitive position is in the middle of Cardig Aero Service Ltd. and Samudra Ltd. Table 3 Competitive Profile Matrix of Forwarding Business No. Critical Factors Weight Prima International Cargo Ltd. Cardig Aero Services Ltd. Samudra Ltd. Rating Score Rating Score Rating Score 1 Utilization of capital investment effectively and efficiently 0,269 4 1,076 4 1,076 4 1,076 2 A quick and responsive decision making 0,188 4 0,752 4 0,752 3 0,564 3 Effective personnel’s regulation and SOP 0,119 4 0,476 3 0,476 3 0,357 4 Loyal and qualified human resources 0,287 3 0,861 4 0,861 3 0,861 5 Comprehension and commitment of company’s vision and mission by owner, board of directors and employees 0,137 3 0,411 4 0,548 3 0,411 TOTAL 1 3,576 3,713 3,269 The Business Strategy Analysis …… (Regina Inderadi et al.) 37 In the next analysis stage, business competitive position matrix provides the recommendation for strategic resources allocation and strategic development for the multi-businesses company by comparing Prima International Cargo Ltd. with its four competitors that can be seen Table 4. It can be stated that position and relative competitive development are two fundamental frameworks which should be considered in determining the best strategy based on the portfolio context. In this competitive position evaluation, a company’s business units can be classified into four main categories; Quadrant I (high growth rate, high market share), Quadrant II (high growth rate, low market share), Quadrant III (low growth rate, high market share), and Quadrant IV (low growth rate, low market share). This analysis approach is identical with Boston Consulting Group (BCG) matrix method, but with different practice (Dennis-Debrecht, 2014). In BCG matrix, Strategic Business Unit (SBU) of a corporation is assessed based on their position and competitive growth, while in this approach, position and growth of companies competing in the same industry are evaluated. Figure 2 shows BCG matrix of four forwarding business in Indonesia. Table 4 Business Competitive Position Matrix and Business Growth Company Name 2015 2016 Relatives Market Share Market Growth Rate Asset (percentage) Prima International Cargo Ltd. $9.296.021 $4.302.426 0,01 -0,53% 0,412% Samudra Indonesia Ltd. $451.126.030 $406.437.733 1,00 -0,09% 38,984% Iron Bird Ltd. $396.602.985 $365.889.358 0,90 -0,07% 35,095% Cardig Aero Services Ltd. $118.260.950 $135.644.407 0,33 0,14% 13,010% Soechi Lines Ltd. $141.833.461 $130.288.044 0,32 -0,08% 12,496% TOTAL $1.042.561.968 Figure 2 BCG Matrix of Forwarding Businesses in Indonesia Similar to Business Competitive Position and Industry Growth, Grand Matrix Strategy consists of two evaluative dimensions. This matrix is using information of input phase to consolidate internal opportunities and external threats and classified company into four main separated categories (Aithal, 2016; Barney & Hesterly, 2015; David, 2015). Figure 3 shows Grand Matrix Strategy of Prima International Cargo. 38 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 Figure 3 Grand Matrix Strategy of Prima International Cargo Finally, Quantitative Strategic Planning Matrix (QSPM) is the decision stage which only one framework used in the strategy analysis and choice. The purpose of this method is to identify strategy alternatives by selecting attractiveness score for each strategy. Table 5 shows QSPM for strength and weaknesses, while Table 6 shows QSPM for opportunities and threats. Table 5 QSPM for Strengths and Weaknesses Key Factors Weight Adding sub business unit to serve delivery service for small sized goods or individuals Conduct IT innovation to open opportunities to enter E-commerce business Liquidation AS TAS AS TAS AS TAS Strengths Prima International Cargo Ltd. has 43 years of experience in Freight Forwarding industry. 0,092 2 0,184 4 0,01693 1 0,092 Prima International Cargo Ltd. is a member of IATA since 1988 0,088 2 0,176 4 0,01549 1 0,088 Having a worldwide network by being a member of World Air Cargo Organization(WACO) exclusively since 1976 0,121 2 0,242 4 0,02928 1 0,121 Prima International Cargo Ltd. has some features and functions such as Warehouse, Trucking, Distribution, and so forth 0,111 2 0,222 2 0,222 1 0,111 Has been certified by PPJK and EDI Indonesia 0,079 2 0,158 3 0,237 1 0,079 Weaknesses Software system of Prima International Cargo Ltd. is not well accommodated IT development in Freight Forwarding and Logistics field 0,099 2 0,198 3 0,297 1 0,099 The Business Strategy Analysis …… (Regina Inderadi et al.) 39 Table 5 QSPM for Strengths and Weaknesses (Continued) Key Factors Weight Adding sub business unit to serve delivery service for small sized goods or individuals Conduct IT innovation to open opportunities to enter E-commerce business Liquidation AS TAS AS TAS AS TAS Weaknesses Prima International Cargo Ltd. is experiencing difficulties in finding potential personnel with expertise in Freight Forwarding and Logistics 0,115 2 0,23 4 0,46 1 0,115 Prima International Cargo Ltd. is having ineffective operational branches 0,094 3 0,282 4 0,376 1 0,094 Profit reached minus point in 3 recent years. 0,085 2 0,17 4 0,34 1 0,085 Weak brand image of the company 0,116 3 0,348 4 0,464 1 0,011 6 TOTAL 1 2,21 2,4577 1 Table 6 QSPM for Opportunities and Threats Key Factors Weight Adding sub business unit to serve delivery service for small sized goods or individuals Conduct IT innovation to open opportunities to enter E-commerce business Liquidation AS TAS AS TAS AS TAS Opportunities Increased in number of production for both medium and large industry 0,104 3 0,312 4 0,416 1 0,104 E-commerce continues to rise in emerging markets, creating more opportunities in developing and increasing company’s revenue 0,097 3 0,291 4 0,388 1 0,097 Infrastructure development that connecting areas and cities within Indonesia is increasing and enabling development of new businesses 0,126 3 0,378 4 0,504 1 0,126 Increased in number of shipment through Air Freight in recent year 0,114 4 0,456 4 0,456 1 0,114 Government policy issuance about regulation, ease of doing business and investment and trading which initiating opportunities to do business expansion and joint venture with foreign investment 0,08 3 0,24 2 0,16 1 0,08 Threats Government policy for Foreign Investment in Indonesia has made Multinational Company with large capital entering freight forwarding business competitively from upstream to downstream 0,09 0,18 3 0,27 1 0,09 40 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 Table 6 QSPM for Opportunities and Threats (Continued) Key Factors Weight Adding sub business unit to serve delivery service for small sized goods or individuals Conduct IT innovation to open opportunities to enter E-commerce business Liquidation AS TAS AS TAS AS TAS Threats With the policy and ease of investment and ASEAN economic society at the end of 2015 and beginning of 2016, there will be more similar businesses enter Indonesia’s market 0,107 0,321 2 0,214 1 0,107 Indonesia may join Trans-Pacific Partnership in order to liberate trading to open more opportunities to foreign investors 0,088 0,264 2 0,176 1 0,088 Export-import situation has been unstable since the last 5 years 0,08 0,24 2 0,16 1 0,08 Express courier service company has begun to expand their business into large scale shipment 0,114 0,228 2 0,228 1 0,114 TOTAL 1 2,91 2,972 1 From sum total attractiveness score, it can be concluded that Market Penetration total score is 5,21(2,21+2,91), Product Development total score is 5,4297, and liquidation is 2. The highest score is product development strategy. CONCLUSIONS Internal Factor Evaluation (IFE) matrix evaluates the major strengths and weaknesses in the functional areas of forwarding business. It is noted that the total weighted score of IFE matrix 2,593 is barely above the average of 2,50, which indicates there is definitely the area for improvement in operations, strategies, marketing, and policies aspect. Moreover, the IFE matrix provides important information of the key internal factors. Firstly, Prima International Cargo Ltd. has been operating for the long period of time in freight forwarding industry and has possessed a lot of certifications, which are their main strengths and considered as really important factors to being successful in this business. Secondly, major weaknesses are its lack of advanced software utilization, ineffective branches, and minus profit number in recent years. Furthermore, from Competitive Profile Matrix (CPM), Prima International Cargo Ltd. receives a 3,713 overall rating which suggesting that this forwarding firm is better in some areas compared with the other two firms. Additionally, External Factor Evaluation (EFE) matrix identifies both opportunities and threats that affect Prima International Cargo Ltd. and its industry. The major opportunity for this firm is an increase in the number of shipment through Air Freight in recent year. While the major threats are the newly opened Indonesia’s market for foreign investors and instability of export-import activities in Indonesia. It is noted that the total weighted score of 2,476 is below the average of 2,50, so it can be concluded that this forwarding business is not doing well, not taking many advantages of the external opportunities, and not excellent in avoiding the threats facing the firm. The Business Strategy Analysis …… (Regina Inderadi et al.) 41 The second stage is called the matching stage that includes the Business Competitive Position Matrix, Boston Consulting Group (BCG) matrix, and Grand Matrix Strategy. Shortly, from BCG matrix, Prima International Cargo Ltd. has a low relative market share position and competes in a slow or no-market-growth industry. Some strategies to pursue are liquidation, retrenchment, and divestiture. On the other hand, from Grand Matrix Strategy, the firm positioned in Quadrant II that needs to evaluate its position in the market and aware that it is unable to compete effectively. Some possible strategies are market development, market penetration, product development, and liquidation. The last stage is called the decision stage, which is to find out what is the most optimal strategic decision, resulting in total attractiveness scores of 5,4297 that the analysis indicates the business should develop an e-commerce business and develop its IT system to support the new business. REFERENCES Aithal, D. P. (2016). Study on ABCD analysis technique for business models, business strategies, operating concepts, & business system. International Journal in Management and Social Science, 4(1), 98-115. Altomonte, C., Aquilante, T., & Ottaviano, G. (2012). The triggers of competitiveness: The EFIGE cross-country report. Belgium: Bruegel Blueprints Series. Barney, J., Wright, M., & Ketchen Jr., D. J. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625-641. Barney, J. B., & Hesterly, W. S. (2015). Strategic management and competitive advantage concepts and cases. Edinburgh Harlow: Pearson. Buckley, P., & Ghauri, P. (2004). Globalisation, economic geography, and the strategy of multinational enterprises. Journal of International Business Studies, 35, 81-98. Burgelman, R. A., Christensen, C. M., & Wheelwright, S. C. (2009). Strategic management of technology and innovation (Fifth Ed.). New York: McGraw-Hill/Irwin. Chikan, A., & Gelei, A. (2010). New insight into the competitiveness of supplier firms: Aligning competences and customer expectations. International Journal, Supply Chain Forum, 11(2), 30-44. Czinkota, M. R., & Ronkainen, I. A. (2005). A forecast of globalization, international business, and trade: Report from a Delphi study. Journal of World Business, 40(2), 111-123. https://doi.org/10.1016/j.jwb.2005.02.006. David, F. R. (2011). Strategic management: Concept and cases (13th Ed.). New Jersey: Pearson. David, F. R. (2015). Strategic management concepts and cases. Edinburgh Gate: Pearson Educational Limited. David, M. E., David, F. R., & David, F. R. (2016): The quantitative strategic planning matrix: A new marketing tool. Journal of Strategic Marketing, 25(4), 1-12. https://doi.org/10.1016/j.jwb.2005.02.006 42 Journal The WINNERS, Vol. 19 No. 1, March 2018: 31-43 Dennis-Debrecht, M. L. (2014). Using the Boston Consulting Group portfolio matrix to analyze management of a Business Undergraduate Student Program at a Small Liberal Arts University. Journal of Higher Education Theory and Practice, 13(2), 65-69. Depperu, D., & Cerrato, D. (2003). Analyzing international competitiveness at the firm level: Concepts and measures. Milan: Universita Cattolica del Sacro Cuore. Feurer, R., & Chaharbaghi, K. (1994). Defining competitiveness: A holistic approach. Management Decision, 32(2), 49-58. Gassmann, O., Frankenberger, K., & Csik, M. (2014). The business model navigator. Harlow: Pearson Education. Hartungi, R. (2006). Could developing countries take the benefit of globalisation? International Journal of Social Economics, 33(11), 728-743. https://doi.org/10.1108/03068290610705652. Huda, M., & Wibowo, M. A. (2013). Strategies, performance, sustainability, and competitiveness model: Small and medium construction services industries in Indonesia. World Applied Sciences Journal, 25(8), 1186-1196. Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2009). The management of strategy: Concept and cases (8th Ed.). Mason, OH: South-Western Cengage Learning. Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2015). Strategic management: Concepts competitiveness & globalization. USA: South-Western-Cengage Learning. Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce, and Management, 3(6), 955- 967. Kourdi, J. (2009). Business strategy: A guide to taking your business forward (2nd Ed.). London: Profile Books Ltd. Lazonick, W. (2015). The theory of innovative enterprise: A foundation of economic analysis. Network, Cambridge, Massachusetts: The Academic-Industry Research. Liu, X., Grant, D. B., McKinnon, A. C., & Feng, Y. (2010). An empirical examination of the contribution of capabilities to the competitiveness of logistics service providers: A perspective from China. International Journal of Physical Distribution & Logistics Management, 4(10), 847-866. https://doi.org/10.1108/09600031011093232. Monteiro, J., Alves, A. C., & Sameiro-Carvalho, M. (2017). Processes improvement applying Lean Office tools in a logistic department of a car multimedia components company. Procedia Manufacturing, 13, 995–1002. Sudrajat, D., Budiastuti, D., Setiadi, N.J., & Supeli, A. (2017). The effect of integrated information technology on innovative capability and its impact on firm performance. Proceedings of 2016 International Conference on Information Management and Technology, ICIMTech 2016. Bandung, Indonesia, pp. 333-337. Tuominen, M., & Hyvönen, S. (2004). Organizational innovation capability: A driver for competitive superiority in marketing channels. The International Review of Retail, Distribution, and Consumer Research, 14(3), 277-293. https://www.emeraldinsight.com/author/Hartungi%2C+Rusdy https://doi.org/10.1108/03068290610705652 https://doi.org/10.1108/09600031011093232 The Business Strategy Analysis …… (Regina Inderadi et al.) 43 Volberda, H. W., & Elfring, T. (2001). Rethinking strategy. London: SAGE Publications Ltd. Zueva, O. N., & Shakhnazaryan, S. A. (2014). Logistica vozvratnyh potokov vtorichnyh resursov. Vestnik Baltiiskogo federalnogo universiteta im. I. Kanta (9), 142-143.