Proposed Strategy to Improve Profitability at PT. Kurita Indonesia

During its operation in Indonesia, PT. Kurita Indonesia as a water treatment company has recorded considerably low profitability and the revenue growth has not been optimal based on year-on-year comparison. Some of the factors that cause the problems are the increasingly tight price competition and the high prices of raw materials for commodity products. To achieve better profitability and gain more market share, research was conducted to understand the market of water treatment in Indonesia, to identify what is needed by its customers and be able to differentiate the company from its competitors, thus the company can determine its competitive advantage and implement it for a new strategy. The research was conducted by qualitative method with data were collected from interview with respondents and direct observation to the internal company and its customers. The result of research shows that water treatment customers in industries tend to choose water treatment supplier who can provide added value to their companies, especially from environmental standpoint and cost saving of the total operating cost. Hence, PT. Kurita Indonesia should create a strategy that focuses on value creation to customers and utilize its unique products that can be relied upon to provide value to customers. The company should also implement a value-focused marketing strategy to adapt and respond to future challenges.