Proposed Strategy for The Development of Turbomachinery Equipment Service in Indonesia (Case Study: PT XYZ)

PT XYZ is one of the companies in Indonesia focusing on heavy rotating equipment, repair and manufacture Not only domestically, the company also plans to expand the business internationally to other countries in South East Asia. By increasing the company’s sales revenue and expanding the market share, PT XYZ might be able to achieve the goal. However, in the sales it is found that the current operational management strategy can no longer sustain profitable and it makes the sales revenue drops for the last two years. The purpose of this research is to find and identify the strategy of the turbomachinery equipment service business to keep on growing in Indonesia. The conceptual framework used this strategy begins with analyzing the external environment by using PESTLE, Porter’s Five Forces, and competitor analysis. After external analysis, internal analysis is done by analyzing the resources and the value chain. Later on, all of the results will be summarized with a SWOT analysis. The results reveal that the company does not have a coherent business strategy. Thus, it evokes several problems in some internal parts of the company, such as an ineffective marketing strategy and improper resource allocation. The applied strategy in this research is the differentiation strategy. This differentiation strategy expansion will be the key to support the company’s development in the turbomachinery equipment service market in Indonesia. Meanwhile, the outcome is expected to extend PT XYZ’s market share, product development, and service development later in the future.