PROPOSED

FEASIBILITY STUDY AND IMPLEMENTATION FOR

PT. KREASI EDULAB INDONESIA


INTERNSHIP REPORT


By:
Nadya Rizkita Putri A
29115630
Young Professional 54B

Master of Business Administration Program
School of Business and Management
Institut Teknologi Bandung
2017














This page is intentionally left blank

i

 Acknowledgements

Assalamualaikum Wr.Wb.
This internship program in Internal Audit at PT Create Edulab Indonesia is
valuable experience for the author. For 4 months period, there are so many
knowledge and soft skill that acquired from this internship. Respect and deep
gratitude from Author to various parties who help and assist in the preparation of
this report. Author would like to thank profusely to:
1. Mr. Aguntaran ST., as supervisor of PT Create Edulab Indonesia, and all
employees in PT Create Edulab Indonesia who have helped the author
during the internship program
2. Mrs. Yani Nurhayanti as Career Service, Industrial & Alumni Relations
Staff at MBA ITB for the guidance acquiring internship program and for
administration work
3. My family who always give support from the other city
4. All my family from MBA YP 54 B who always give the information
about the lectures and always give me support
5. All parties who cannot be mentioned one by one who has assisted me so
the internship program can running smoothly
The author realizes that this report is still not perfect. To the author expect
criticism and suggestions so that this report could be better. Hopefully this report
can be useful and provide a positive value for all of us.

Bandung, August 2017

Author

ii


Table of Contents
Acknowledgements ................................................................................................ ii
1 Background ...................................................................................................... 1

1.1 PT. Create Edulab Indonesia Company Profile .............................................. 1

1.1.1 Edulab Indonesia Vision, Mission, and Service Value ................................. 6
1.1.2 Edulab Indonesia Products ............................................................................ 8
1.1.3 Edulab Indonesia Organizational Structure ................................................ 13
1.2 Scope of Work ................................................................................................... 14
1.3 Objectives of the Internship ............................................................................. 16
2 Business Requirements ................................................................................. 17

2.1 Theoretical Framework .................................................................................... 18

2.1.1 Marketing Mix ............................................................................................ 18
2.1.2 Service Marketing ....................................................................................... 20
2.1.3 Consumer Behavior ..................................................................................... 21
2.1.4 Strategic Management ................................................................................. 22
2.2 Methodology ...................................................................................................... 25
2.2.1 Research Methods and Techniques ............................................................. 25
2.3 Finding & Analysis ........................................................................................... 30
2.3.1 SWOT Analysis .......................................................................................... 30
2.3.2 Porter’s Five Forces .................................................................................... 32
3 Business Solution ........................................................................................... 34
3.1 Proposed Solution ............................................................................................. 34
3.1.1 Apply Feasibility Study ............................................................................... 34
3.1.2 Increase Spending on Market Analysis and Consumer Behaviour ............. 37
3.1.3 Promote the “Edulab Indonesia” Brand ...................................................... 37
3.2 Practical Implication ........................................................................................ 38
3.2.1 Feasibility Study, Market, and Consumer Behaviour Analysis .................. 38
3.2.2 Promoting and Brand Awareness ................................................................ 39
3.3 Implementation Plan ........................................................................................ 39
4 Lesson Learned.............................................................................................. 40

iii
 iv
 CHAPTER I

INTRODUCTION

1 Background

Business Immersion is one of mandatory courses for students of Young

Professional program in MBA ITB. The aim of this program is to make students
participate in direct work and give them the understanding of how the work field
goes. Students are expected to get first hand experience to implement their
competence in business management as they had been studied. This is a learning
process and opportunity for students to adapt in real work field prior their
graduation under guidance and assistance of both company’s supervisors and
counselor/lecturer. As a student of Young Professional program in MBA ITB,
author also enroll in this program and got placed in a vibrant and growing
company of PT. Create Edulab Indonesia in their Headquarter in Bandung,
Indonesia. The author sees that the company has offered a different approach on
business model within the education industry and that it’s interesting to learn.

The author starts the internship on March 15th, 2017 as an intern staff for
Satuan Pengawas Internal (SPI) department. The job scope that was given to
author evolves in business strategic, business performance analysis, slightly on
operation and risk assessment. Within the scope, author was given tasks on
designing the company’s workflow, SOP (Standard Operating Procedure), and
Feasibility Study framework for opening new branches.

1.1 PT. Create Edulab Indonesia Company Profile

PT. Create Edulab Indonesia is an education consultant and institution
that established on July 2nd, 2007 at Jl. Ciwulan no.28, Bandung and founded by
Mr. Oki Earlivan Sampurno, S.Mn, M.BA. The company runs under EDU
1
GLOBAL INDONESIA GROUP as one of their business entity along with their
other businesses that also in educational industry such as Edu Global School,
Vellocity Private Center, Vallet 99, and Eduplex Virtual Office Study and Café.
Edulab Indonesia Headquarters located in Ir. H. Djuanda No.84, Bandung, West
Java.







Figure 1-1 Edulab Logo
Source: BnC Edulab Team, June 2017

As the pioneer of it’s kind, Edulab proposed and applied innovative

concept unlike precedent conventional tutoring institution. They combined
academic and psychological aspects of interpersonal approach to build student’s
motivation to learn. The methods they use on achieving their interpersonal
approach is by using a small class system and Talents Mapping. Small class
methods allow them to ensure benefits for all pupils because of individual
attention from teachers. It also lower student–teacher ratios, which are better at
teaching students on complex subjects. The method will help student focus and
have better stimulation on class.
Meanwhile, their Talents Mapping test is used as a tool to map their
student’s interest and talents. Talent mapping is a formalized process of linking
the talent on hand to the talent that will be needed to support growth in order to
assess shortfalls or gaps. They can tailored a suited approach and strategy for each
students cohered with their potential, interest, and talents. Guided with this
2
knowledge can build student’s motivation to learn and generate best results from
students on pursuing their goals.
To applied their concepts and methodology into practice, Edulab
prepare supported tools such as homey place, 24/7 learning system support
where their students can access their coach for their study related in flexible
time, and trained coach under their philosophy of coaching to have coherent
and integrated teaching system.
Philosophy of coaching is a guideline and framework used to ensure
the application of their concepts and methodology. It consists of 3 key
philosophies: Understand, Train, and Forming. These key philosophies
together established a process and linked from one to another. The first key,
Understand, is the main capital and the most important thing in children
learning process. Training is a process of repetition, habituation, and
sustainability, without it the learning process is not optimal. The third key,
Forming, is an awareness that being smart is not enough, mental and
character should be established to realize their dream.

3
 Figure 1-2 Philosophy of Coaching
Source: BnC Edulab Team, June 2017
Edulab understand that as an education consultant, their goal is not
only the student’s academic achievement. With this key philosophy, Edulab
shows their awareness on other responsibilities they have on their students,
which includes their role in their student’s psychological development
process that will form their student’s character in future.

Figure 1-3 Edulab Graduate’s Acceptance on Public University Rate

Source: BnC Edulab Team, June 2017

The success rate of their methodology are portrayed and projected on

their students’ acceptance rate on public university, which is most of their
student’s goal. Looking on Figure 1-3 above, Edulab has shown steady results
over their 9 operation years with acceptance percentage above 80% each year. It

4
reflects their methods and approach in couching students are effective and well
accepted.

Figure 1-4 Edulab’s Students Growth

Source: BnC Edulab Team, June 2017

Aligned with their achievement in their graduate’s acceptance rate, the

number of students registered in Edulab grows rapidly in the last 10 years.
Started with 42 students on their opening years, now they have reach 1700
students. As can be seen from Figure 1-4, their first year growth reach 100%.
Not only that, their average market growth is over 20% and manage
positioned themselves as top 5 Indonesia’s Best Tutoring Institution in just 7
years. This continues with even greater percentage years after and the trend
is still rising. With such growth, it’s only natural for the company to expand
their business by opening other branch.

5
 Figure 1-5 Edulab’s Existing Branch
Source: BnC Edulab Team, June 2017


In 9 years they have managed to open 22 new branches in various major cities in
Indonesia such as Bandung, Bekasi, Medan, Pekanbaru, Padang, Karawang,
Purwakarta, Semarang, Surabaya, Balikpapan, and Makassar. As can be seen on
Figure 1-5, Edulab started to expand their business by opening new branch in the
city just a year after they started. On 2013 they start expanding out of Bandung
and planning on opening more branches this year.

1.1.1 Edulab Indonesia Vision, Mission, and Service Value

Vision
Edulab has a vision “to be the largest and best education consultant
in Indonesia that provides personal service to achieve a good quality of
educational future”.
• Large: Edulab committed to expand to the rest of Indonesia

6
• Best: Edulab commited to provide premium service to employees and
clients
• Personal: Edulab committed to become an education consultant that
emphasizes personalized service to each student so that their potential
can be optimized to achieve future objectives of education.
• Quality: Edulab commited to optimize educational innovation both
online and offline to clients of Edulab

Mission

Committed to providing assistance the best education to students, educators,

and community through innovative products and services in order to create
beings of quality

Service Values

Edulab has service values named “EDUCATE” and their

employees strive to implement it in every aspect of Edulab, when dealing
with student, parents and other stakeholders. Every letter of EDUCATE has
a meaning. “E” means engaging client intimacy, “D” is Dynamic Learning
which means Edulab use innovation of learning and teaching process. “U”
is an ultimate, meaning that Edulab have a qualified educator, subject
mastery, and deep thinking. “C” is comfortable, it means that it provide a
homy and friendly place for students. ”A” is assisting which means
compassionate through personal service in Academic and Psychological
Approach. “T” is talents exploring that means accelerate talent of all
edulabers. “E” is enlightening that means informing, motivating, and
consulting the students.

7
1.1.2 Edulab Indonesia Products

Edulab have 4 types of program study, suite class, deluxe class,

velvet class, and short course. Each class has different targets and
segmentation that designed based on the market needs. Below are the
elaborate descriptions of each class:

a. Deluxe Class














Figure 1-6 Edulab’s Class Type – Deluxe
Source: BnC Edulab Team, June 2017

Deluxe Class is their regular/basic class meant for High

School students and Junior High School students. This program has
relatively diverse market segmentation and designed to address
general needs. The fee for deluxe class is 15 million rupiah and 750
thousand rupiah for entry fee. On deluxe class there are 4 optional

8
programs that you can choose namely SBMPTN class, UNPAR BINUS
TELKOM class, STAN STIS IPDN class, dan Jawara SBMPTN class.

b. Suite Medulab Class














Figure 1-7 Edulab’s Class Type – Suite
Source: BnC Edulab Team, June 2017

Suite Medulab Class is their intensive class program
specifically designed for Senior High School students in class 12th or
senior year students, which have plans on applying to medical
school. This program specifically use learning methodology made for
preparatory program focusing on Science-Medic. To enter a suite
class, it will cost you 30 million rupiah and entry fee for 1 million
rupiah.

9
c. Suite Platinum Class

















Figure 1-8 Edulab’s Class Type – Suite
Source: BnC Edulab Team, June 2017

Similar with Suite Medulab Class, Suite Platinum Class is also
an intensive class program for senior year students. The different is,
this class is designed specifically for students that planning on
applying to either engineering school or business school such as ITB,
UI, UGM, etc. To enter a suite class, it will cost you 30 million rupiah
and entry fee for 1 million rupiah.

10
 d. Velvet Class









Figure 1-9 Edulab’s Class Type – Velvet
Source: BnC Edulab Team, June 2017

Velvet class is the most basic and general class program
available. This class type is similar with normal tutoring programs of
their competitors. The strength of the company’s products is not well
reflected here aside from its small class system. Their target market
is also more diverse considering the pricing that is lower than the
other programs. The fee of the program is 8.5 Million rupiah and 500
thousand rupiah for entry fee.

Not all subjects that are taught at school would be taught at
EDULAB. Only a couple of subject that was test on National Exam and
college entrance examination would be taught at Edulab. For science
major, the subject that was taught was Mathematics, Physic,
Chemistry, Biology, English, and Bahasa. While for Social major are
Mathematics, Geography, Economics, Sociology, History, English, and
Bahasa. The subject that was taught in EDULAB based on the major
and grades can be seen on Table 1-1 below.

11







Table 1-1 Subjects Based on Class
Class Subjects
XII IPA Mathematics, Physic, Chemistry, Biology, English,
Bahasa
XII IPS Mathematics, Geography, Economics, Sociology,
History, English, and Bahasa
XI IPA Mathematics, Physic, Chemistry, Biology
XI IPS Mathematics, Geography, Economics, Sociology, and
History
X IPA Mathematics, Physic, Chemistry, Biology
X IPS Mathematics, Geography, Economics, Sociology, and
History.

As a part of their service, Edulab has 3 different service based

on their concepts. These services are essentials factors on understanding
the company’s products. They are Additional Learning and Consultancy
every day, Academic and Psychological Approach, and Mapping Talents
and Interest. These services coherent with their concept and differentiate
their products from similar services in the industry. It’s their added value
that positioned them as pioneer in the market.

12

Figure 1-10 Fundamental Added Service in Edulab

1.1.3 Edulab Indonesia Organizational Structure

Figure 1-11 Edulab Organizational Structure

Above is organizational structure of PT. Kreasi Edulab Indonesia.

Edulab currently consist of five directorates, namely brand and
communications, Human Capital, Academic, Edulab Institute Program, and

13
 regional directorate which consist of East Indonesia, Sumatera, and West
Java. As shown on Figure 1-12 Edulab’s Chief Executive Officer is Oki
Earlivan Sampurno, S. Mn, M.B.A, Deden Sahid, S.Pd as corporate
strategy, Aguntaran, S.T as Internal Auditor, Setyo Dwi Santoso, M.Si as
East GM, Cicik Setyabudi Utami, S.Si as GM Sumatera, Kanesha
Banoraswati, S.Pd as West Java GM, Rizka Khairani, S.Hub. Int, M.A as
GM Brand and Communication, Machri Sulthoni S.Kom as GM Human
Capital, Harsya Bachtiar, S.Si, as GM Academic, Sandi Rudiansyah, S.Pd as
GM EIP.

















Figure 1-12 Positions and Name in Edulab Organizational Structure

1.2 Scope of Work

In Edulab, Author was given the opportunity to undertake internship
for 3 months, from March to June 2017. Being positioned at Internal Audit
Department, Author was supervised directly by the Head Division, Mr.

14
Aguntaran ST. This Department focused on supervising and audit the running
of others departments, supervising strategic planning process and assessing
company’s risk, and audit the system implementation on every department at
every level.
After discussion and getting the introduction on how the
departments work, Author was given task based on the company’s needs and
Author’s ability. Challenged by lack understanding on assessing risk, Mr.
Aguntaran as the supervisor give author several tasks as Intern, which are:

a. Assisting on Making Work Flow for Upgraded Company’s SOP
The Author was given the task to observe and interview each
department in the company to analyze and form their workflow. The
result from observation and interview were then analyzed by using the
company’s new Standard Operating Procedure as benchmark.
b. Identifying Corporate Risks
After settling with the system in departments work flow and SOP,
Author analyze the gaps that might cause issue and assess it to classified the
risk that can come out of it. Author was also given the targets company has
and actual data the company actually manage to generate to help on
assessing the possible risks.
c. Proposing Feasibility Study Framework for Future Branch
Opening
Given situation that company still looking for feasibility study
framework that suited their business model, Author was asked to proposed
an idea for forming the framework. Author worked with the two task prior
this last one to make a coherent system in the company that tailored to their
business needs.

15
 Aside from the three major tasks above, Author also use the opportunity
to asked and learn other things Edulab has to offer. As one of the leading and fast
growing company, Author feels that many precedents in the company can become
a good case study to learn with.

1.3 Objectives of the Internship
There are several goals of the internship program, such as:
1. Support the Internal Audit Department in PT Create Edulab Indonesia
by sharing activity.
2. Implement the lesson that already learned in the MBA ITB class such
as Business Strategy, Marketing, and Corporate Risk Management.
3. Acquire knowledge about the duties and scope of work in Business
Strategic Development and explore the passion in Strategic and Risk.
4. Get a new skill and knowledge that must be possessed in the workplace,
such as skill to conduct a draft of decree and making rules by looking
from some aspects, knowledge about employee training and
development in real business and knowledge about business strategy.
5. Explore the skill in analyze issue and acquire critical thinking skill to
solve the problem of company, increasing self confidence of own
capabilities with supervision by user from PT Create Edulab Indonesia

16
 CHAPTER II
BUSINESS ANALYSIS

2 Business Requirements

Edulab as an education consultant have a vision to be the largest and

best education consultant in Indonesia that provides personal service to
achieve a good quality of educational future. To achieve that vision, Edulab
needs to have the right strategies to achieve the strategic competitiveness,
which can only be reached when the company successfully formulates and
implements a value creating strategy. The key to have a complete value-
creating strategy is to have a holistic approach including business strategy,
financial strategy, technology strategy, human resource strategy and
marketing strategy in the same line in order to develop a competitive
advantage and ahead of the competitors. When pursuing strategic
competitiveness, all firm use the strategic management process as the
framework foundation.

Having a rapid growth since the very first year of the business
running, Edulab Indonesia is open for threats of being caught on it’s own
growth. With this in mind, a strategic to expand is urgently needed to prevent
the company from taking a high risk without protection.

Figure 2-1 Existing Branch of Edulab Indonesia - Jan 2017 17

 As shown on the figure above, until 2016 Edulab Indonesia has managed
to expand their business by opening branch on national scale. They are no longer
just a local Bandung or Java-centered education consultant, they have manage to
spread out their business to Sumatera, Kalimantan, and Sulawesi. This also means
their facing threats and risk in national scale and bigger input and environments
study are needed. This is one of the major reason why the company need to
strengthened their business strategy to ensure their values and brand are well
develop along with their business growth.

2.1 Theoretical Framework

This section describes concerning the theories and reviews of related literatures in
order to make strongly supports to this study.

2.1.1 Marketing Mix

Marketing mix is the overall marketing offer to appeal to the target

market. It consists of four basic areas: product (development of a product,
service to exchange), pricing (what to charge for the exchange), marketing
communications (how to communicate with the target market about the
possible exchange), and distribution (how to get the product, service to the
target market) (Bearden, Ingram, Laforge, 2001).

McCarthy (1996) mentioned that marketing mix is the external

factor that influence on buyer’s purchasing decision. It consists of a set of
controllable tactical market tools such as product, price, place and
promotion that firm uses to produce the response it wants in the target
market. Kotler (2000) also declared that marketing mix is the set of
marketing tools such product, price, place, and promotion that the firms use
to pursue its marketing objectives in the target market.

18
• Product

Kolter (2003) stated that product is anything that can be offered to a

market to satisfy a want or need. Products that are marketed include
physical goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas. McCarthy and
Perreault (2002) also mentioned that product means the need satisfying
offering of a firm.

• Price

Hawkins and Kenneth (1998) mentioned that price refers to the

perceived value of goods and service measured in some medium of
exchange. Price refers to the cost of acquiring the products and services
in the eyes of customers.

Price is one of the four major variables a marketing manager control.

Price-level decisions are especially important because they affect both
the number of sales a firm makes and how much money it earns. From a
customer’s perspective, price is what must be given up to get the
benefits offered by the rest of a firm’s marketing mix, so it plays a
direct role in shaping customer value (McCarthy, 2002).

• Place

In education consultant and institution industry, place is one of the most

significant to settle in order to reach the targeted market due to the
specific nature of the business. To bold it, Kotler (2003) mentioned that
location or place is the critical factors in retailing success and key to its
ability to attract customers. In additional, the right location or place can

19
 diminish the cost of transportation and time consuming, and raise goods
delivery system smoothly. Kotler (2003) stated that transportation
affects the pricing in shipping products to the consumers. On-time
delivery performance and the condition of goods when they arrive can
affect the customer satisfaction as well.

• Promotion

Promotion is communication information between seller and potential

buyer or others in the channel to influence attitude and behavior
(McCarthy and Perreault, 2002). The marketing mangaer’s main
promotion job is to tell target customers that the right product is
available at the right place at the right price. Shimp (1997) also
mentioned that promotion is about communication with the customer
and about persuading people to try our products and is often very much
concerned with attitude change. Promotion comprises elements such as:
advertising, personal selling, sales promotion and public relations.

2.1.2 Service Marketing

Organizations already have discovered that their survival no longer

exclusively depends on the products they offer, but also on the added value
they make to their customers that differentiate them from their competitors.
Innovative organizations, offering new services as well as unique customer
services, are now succeeding in markets where established organizations
have failed (Lovelock and Patterson, 1998).

Customers are becoming more educated and demand not only

quality products but also high levels of services to company. Service
organizations therefore need to adapt to customers’ views on services in
order to assess whether the services they provide are perceived by customers
20
as better than those provided by other service providers (Kasper et al.,
1999).

2.1.3 Consumer Behavior

The study of consumers helps firms and organizations improve

their marketing strategies by understanding issues such as how:

• The psychology of how consumers think, fell, reason, and select

between different alternatives (e.g., brands, products, and retailers)
• The consumer is influenced by his or her environment such culture,
family and media
• The behavior of consumers while shopping or making other
marketing decisions
• Limitations in consumer knowledge or information processing
abilities influence decisions and marketing outcome
• How consumer motivation and decision strategies differ between
products that differ in their level of importance or interest that they
entail for the consumer, and
• How marketers can adapt and improve their marketing campaigns
and marketing strategies to more effectively reach the consumer.
(Lars Perner, 1999)

The roles of consumer behavior are very important in contribution

of marketing strategy. In consumer markets, marketing strategies are
typically designed to increase the chances that consumers will have
favorable thoughts and feelings about particular products, services, and
brands, and will try them and repeatedly purchase them. Also, marketing
strategies are developed by retail stores, catalog retailers, e-tailers and other
direct marketers to increase the chances that consumers will have favorable

21
thoughts and feelings about purchasing form them and will actually do so
(Peter and Olson, 2008).

Model of Consumer Behavior

Understanding consumer behavior and “knowing customers,” have

and never will be simple. Consumers may say one thing but do another and
not be in touch with their deeper motivations. However, there are numerous
models trying to explain consumer behavior. These models generally deal
with various stimuli, influential factors, the decision-making process and
outcomes. Some models are very basic and categorize all variables such as
the one proposed by Kolter (2000), which is illustrated in Figure 2-1.

Marketing Other Marketing Stimuli Buyers

Stimuli Stimuli Response
• Product • Economic Buyer Buyer • Product
• Price • Techno - Characteris Decision Choice
• Place Logical tics Process • Brand Choice
• Promotion • Political • Purchase
• Cultural Timing
• Purchase
Amount

Figure 2-2 Model of Buyer Behaviour

2.1.4 Strategic Management

Business issue that was faced by Edulab is how to decide which

strategy that going to help Edulab to achieve its strategic competitiveness.
The purposes of these strategies management process are to increase
Edulab’s sales and market shares as a requirement to become the largest

22
education consultant in Indonesia. Not only that, this strategy is also needed
to make sure their rapid growth won’t In order to achieve strategic
competitiveness, Edulab must successfully formulate and implements a
value-creating strategy.

The key to having a complete value-creating strategy is to have a

holistic approach including business strategy, financial strategy, technology
strategy, human resource strategy and marketing strategy in the same line in
order to develop a competitive advantage and ahead of the competitors.
When pursuing strategic competitiveness, all firm use the strategic
management process as the foundation.

In order to pursuing strategic competitiveness, the author

implements strategic management process. The strategic management
process is the full set of commitments, decisions, and action required for a
firm to achieve strategic competitiveness and earn above-average returns
(Hitt, Ireland, & Hoskisson, 2011).

23
 Strategic Management Process
Phase

Find appropriate strategies for

Edulab to increase sales and
market share as the requirements
to achieve their vision to be the
largest education consultant in
Indonesia
Environmental Scanning

Financial
Performance
Analysis
• General Environment • Resource
(PASTEL) • Capabilities
• Industry Environment (Porter • Core Competencies
5 Forces) • Value Chain Analysis
• Competitor Environment

SWOT
Analysis
Formulation
Strategy

Functional Corporate
Business Strategy
Strategy Strategy
Implementation
Strategy

Implementation
Plan
Evaluation
Strategy

Evaluation

Figure 2-3 Strategic Management Process

24
2.2 Methodology

In the end of internship program, students need to submit business

immersion report. The author writes this business immersion report based on
research and findings. In this case, the topic research is training and development,
which means the nature of the topic, is theoretical and descriptive. So, conduct the
research study that suitable is descriptive analysis only. For the study purpose,
author using primary and secondary data to address the issue. Primary data are
collected by sharing knowledge and current condition of training and development
program by company’s user as unstructured interview. The secondary data that
author got access is data of training program that employee joined from 2014 until
2016.

2.2.1 Research Methods and Techniques

a. SWOT Analysis
The product, service or the main aim of the company doesn’t
only determine its vision, mission, objectives and goals; it also
establishes the company’s structure and the way the 18 environments
affects it. A SWOT analysis is a formal framework that identifies and
encloses organizational growth opportunities; it’s the strategic analysis
traditional method.

SWOT is an acronym for an organization’s Strengths,

Weaknesses, Opportunities, and Threats. After analyzing each one of
them internal strengths will be matched to external opportunities. In
addition, internal weaknesses will be converted into strengths and
external threats into opportunities.

25
External Variables Evaluation: Threats and Opportunities

In this section, the relevant external environmental forces that

directly make an effect to the company will be considered such as
competitive, economic, political, legal and regulatory, technological,
and socio-cultural forces.

Threats are conditions or barriers that may prevent the

organization from reaching its objectives, while opportunities are
favorable conditions in the environment that could yield rewards for an
organization if acted on properly.

Internal Variables Evaluation: Strengths and Weaknesses

Strengths are competitive advantages or core competencies that

give the organization an advantage in meeting the needs of its
costumers; weaknesses are limitations a firm has in developing or
implementing a marketing strategy.

b. Porter’s Five Forces Analysis

Porter’s 5 forces model is one of the most recognized
framework for the analysis of business strategy. Porter, the guru of
modern day business strategy, used theoretical frameworks derived
from Industrial Organization (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a
market. This theoretical framework, based on 5 forces, describes the
attributes of an attractive industry and thus suggests when opportunities
will be greater, and threats less, in these of industries.

26
 Attractiveness in this context refers to the overall industry
profitability and also reflects upon the profitability of the firm under
analysis. An “unattractive” industry is one where the combination of
forces acts to drive down overall profitability. A very unattractive
industry would be one approaching “pure competition”, from the
perspective of pure industrial economics theory. It is important to
note that this framework is not for the analysis of individual
firms but for the analysis of the industry.

This model comprises of an analysis dependent on 4 entities

external to the firm and the fifth force: the Industry structure. These
forces are defined as follows:

• The threat of the entry of new competitors

This encompasses the challenges surrounding if new

competitors were to enter the same industry, how would the
profitability be affected? This is measured by the indicators which are
detailed subsequently and is a proxy measure for the degree of
attractiveness of the industry. Factors couls be issues surrounding
economies of scale, proprietory product differences, brand identity,
switching costs for the customers, capital intensive nature of the
industry, access to distribution channels, absolute cost advantages,
government policy surrounding new entrants and potential retaliation or
fallouts. Higher is the threats of entry of new competitors, lower is the
industry attractiveness.

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• The intensity of competitive rivalry:

This is captured by a number of metrics like the growth rate of

the industry, the ratio of cost structure to the value added, cost of over-
capacity, degree of output differences among competitors, impact of
brand and its conversion to sales, switching costs, concentration among
the leading players (Herfindal Index), Information flow and complexity,
diversity of competing businesses and exit barriers. Higher is the
intensity, lower is the industry attractiveness.

• The threat of substitute products or services

This is captured to understand to what extent there is a

possibility of the industry’s product or services being substituted by
some other category of products or services. Factors which
predominantly matter in this force are the relative price advantage of
the substitutes, relative functional performance advantage of the
substitute, switching costs of the customer for moving to the substitute
and the customer’s propensity to substitute.

• The bargaining power of customers / buyers

This force tries to estimate the degree of bargaining of post-

facto relationships that may be empowered due to the dynamics of the
relationship. This could be captured through some metrics like the
buyer’s concentration as compared to the Industry’s concentration,
customer’s volume vs industry output, customer’s switching cost, price
sensitivity, degree of product differences, buyer’s profits and decision
maker’s incentives. Higher is the bargaining power of the customer,
lower is the industry attractiveness.

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• The bargaining power of suppliers

This force tries to explore the impact of the bargaining power of

the industry’s suppliers and how much they can force the industry to
share the benefits of value creation through this bargaining power.
Factors are covered in terms of differentiation of inputs, switching cost
of the suppliers, relationship specific investments required, presence of
substitute inputs, supplier’s industry concentration, importance of
volume to the suppliers, cost relative to the total purchases in the
industry, impact of supplier’s inputs to overall cost structure or
differentiation, threats of forward integration, and potential for
backward integration. Higher is the bargaining power of the suppliers,
lower is the industry attractiveness.

A detailed explanation of what these forces comprise of is

provided in the diagrammatic representation of these 5 forces next.

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2.3 Finding & Analysis

Using all the experiences that the author already got, the communication
skill that the author is already good at, and the internship’s timespan to do the
bonding between stakeholders in Edulab Indonesia, it allowed the author to get
necessary information to do the analysis because of the un-published information
that the stakeholders refused to share to strangers.

2.3.1 SWOT Analysis

Based on the findings, Edulab Indonesia’s strengths,
weaknesses, opportunities and threats are:

STRENGTHS WEAKNESSES

• Newness of Concept • Employee’s Compensation &
• Added Service (Flexible time Benefit
on accessing coach, etc) • Brand Awareness outside
• Loyal clients Bandung
• Excellent teachers/HR • Lack of certain roles in staff
• Opportunities to innovate for • Lack of system for QC of
employee branch outside Bandung
• Rapid growth

OPPORTUNITIES THREATS

• Technology development rapid • Substitute products or

growth competitive startup IT in
• High growth GDRP rate education
• Demand increase caused by • Inflation and rising operational
regulation cost
• High volume of High School • Demand decrease caused by
student in the designated Region regulation
• Targeted Market Size is not as big

Figure 2-4 SWOT Analysis of Edulab Indonesia

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 With the SWOT Analysis figure above Author shows the
finding of collected information she got during her internship, which proven
that Edulab’s main strength lies in their different concept they have that is
new to the market, supported by competent and highly skilled teachers to
runs the program. Their added value in service becomes their weapon and
strength point to help them fight for positioning themselves as the frontier in
the industry and becoming one of the best.

The opportunity that Edulab has is also wide, this related to

their different concept and also demand that’s available in market as an
impact from education regulation and the growth GDRP of provinces in
Indonesia. But the very same reason is also threatening them, due to the
nature of our political situation is not settled and very dynamic.

Along with the strength, Author found weaknesses that the

company have and can deterred them from reaching their vision. Those
weaknesses mainly focus on the internal system on expanding its
business outside Bandung. During Author time in Edulab, many
problems occurred from their lack of understanding and lack of
resources on businesses they had outside Bandung. This especially
strikes them when their brand is not yet known in the area of their new
branch located.

With this analysis, Edulab Indonesia can addressed what are the
aspect that they are good at, keep that aspect in good condition, or even
improving the aspects that they are lacking and assess the threats that can
cost them.

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2.3.2 Porter’s Five Forces

To determine what are the forces that moves Edulab Indonesia,
Porter’s Five Forces Analysis is shown below:

• It’s costly to enter the industry • High Number of

with the same concept Competition
• Specialty knowledge is needed • Differentiation is high
• Some economic of scale • Services differs
• Some cost benefit for expertise • Switching cost is
employee medium to high
• Medium Technology protection MED • Loyal clients is high
• New entry is not as easy

LOW MED to
HIGH

MED

• Moderate and segmented MED

suppliers
• Similar products with
different level of
expertise • Med to High
• Able to change segmented customer
• Differs but similar
products with others
• High Price sensibility
• Medium chances on
substitute performance • Medium on substitute
• It’s costly • Not that costly to
change

Figure 2-5 Porter’s Five Forces on Edulab Indonesia

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 The figure above shows that the new entrants to the business are
medium. The industry itself shows that due to high demand of educational
institution, many similar businesses arise but many of them failed to sustain
because it’s quite costly to begin with. The business needs expertise
resource and it’s costly to have them. That being said, rivalry in the industry
is also medium. There are lots of similar institutions although Edulab offers
different value of service. Those competitors are mostly senior in the
business and have more conventional approach on their service, but their
brand is stronger in some cities in Indonesia.
What is more concerning is the medium to high buyer power
that comes from the sensibility price of its client and unawareness of brand.
This shows how the business is very dependence on the clients and clients
have force on the business. Despite being different from similar business in
the industry, due to sensitivity in price on the client side, their service can
translate into something luxurious. With market economic condition at the
moment it can be bad for business.

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 CHAPTER III

BUSINESS SOLUTION

3 Business Solution

After understanding the theoretical analysis, assessed and identified the

business issue, a solution develop based on these requirements is needed. Author
develops an initial solution and incorporated into specification that will elaborate
more in this chapter.

3.1 Proposed Solution

Based on the SWOT and market analysis that Author did on the findings
before, there are some solutions that can be proposed to solve the business issue.
Some solutions that will be elaborate in this chapter is focusing on how Edulab
Indonesia can expand their business, maximizing their values, knowing their
strength and understand their market in hopes to boost up their targeted customers
numbers and loyalty.

3.1.1 Apply Feasibility Study

As has been mention on chapter before, Edulab is a rapid
growing company that’s on the stage where they expand the business by
opening branch in national scale. This has put the company in risk differs
from what they’re facing when they still focusing on their business in
mainland Java. They have ventured a new market size and with that came
the need to understand their new market.
After discussing with Author’s supervisor, Mr. Aguntaran, the
company needs a comprehend framework to give them a synthesis of how
they should conquered their market when they open new branch. So far,
they have never conduct a well-round feasibility study prior opening or

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expanding their business. They do a simple assessment but with the results
on some branch performances, it has occurred that a more systematic
framework is needed.
Author has proposed a simplified framework based on the
SWOT Analysis and observation during internship on how to assess prior
investing on a new branch. This has been summarized as a market feasibility
study assessment form. This study helps the company to valuate the
feasibility of the targeted new market based on the company’s resources,
strength, and weaknesses.
The critical success factor that has been studied from the
successful branch is then translated as the benchmark for this study. It is
then ranked based on the priority. The ranking process is conducted with the
thought of Marketing mix, consumer behavior, SWOT analysis of the
company, and also Porter’s Five Forces Analysis.
For example, based on the success of branch in Karawang,
Medan, and Makassar. All the branch mention above has better strategic
location that has good accessibility from targeted school, compared to other
branch with lower performance rate. With that observation, author and her
supervisor then give a high rank on assessing the location for potential
branch. Future potential location will then weighted on the criteria given.
The criteria are made based on consumer behavior analysis and marketing
mix. This system help assessor to give a better judgment, objective, and
tailored to the company needs.
They will need to continuously assess the market size and
consumer behavior of their new location. This will help them to get precise
data to support their analysis on making sure the market is ready and
feasible for them to make business there.

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36
3.1.2 Increase Spending on Market Analysis and Consumer Behaviour

From current situation, the company has no designated/ specific

funding on doing market analysis. As a growing and developing business,
it’s understandable and normal for them not to allocate and invest in this
matter. But in author’s opinion, under the observation she has during
internship, with the size of their business at the moment, invest on
understanding their market is unavoidably necessary.

Increase spending and invest their time, resources, and money

for this matter can give them a huge impact on the business. Considering
they are now venturing a bigger market, their system and idealism can’t be
equally applied to their entire branch. Each region needs different approach
to give the system and strategy a chance on surviving the market.

3.1.3 Promote the “Edulab Indonesia” Brand

In Mainland Java, specifically in Bandung, their brand as one of

the best education consultant is well known. Both student’s and parents
know their brand, their quality, and they have good brand power and
positioning in the market.

That being said, the case is difference with their branch outside
of Java. Edulab Indonesia still needs to promote and educate national
market about their brand and its values. This is crucial for them when they
are planning on conquering national scale.

They need to change their local paradigm and marketed

themselves with wider effect promotion. Doing the school to school

37
 promotions can be too costly for them in the long term and the effectiveness
is varied based on the consumer behavior of each region.

They need to maximize their digital marketing via platform such

as instagram, facebook, and youtube to gain brand awareness from their
market. They need to start joining bigger scale network and education expo
to gain attention and educate their market about their values.

3.2 Practical Implication

The Author believe, every decision have risks. This also applies on the
business solutions Author proposed. To assess the risk, Author would like to try to
elaborate on the implications, both positive and negative ones that may outcome.

3.2.1 Feasibility Study, Market, and Consumer Behaviour Analysis

Positive Impacts
- Edulab Indonesia will have record on each branch to make a benchmark
and will designate KPI for each branch easier,
- Edulab Indonesia will have guidance on assessing the market prior
investing to reduce the risk probability that comes from it,
- Edulab Indonesia will understand their market better so they can make
an effective marketing strategy.

Negative Impacts
- It might cause opportunity cost to the company for spending extra time
before investing on new branch
- It might cost the company for analysis funding

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 3.2.2 Promoting and Brand Awareness

Positive Impact
- Edulab Indonesia will attract more number of students
- Edulab Indonesia will have brand power and reduce initial cost for
branch marketing

Negative Impacts
- It will cost the company
- It might deterred company’s cash flow

3.3 Implementation Plan

In order to make the solution applied in Edulab Indonesia, there will be
some adjustment needed. Here are the actions that will help the business solution
to be implemented:

- They will need expertise skill to formulate the framework for them, so
their management officers need to be accustomed
- In a determinate time, Edulab Indonesia need to conduct a meeting to
assigned and evaluate the framework that’s applied

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 CHAPTER IV
LESSONS LEARNED

4 Lesson Learned

There are several lesson learned from this business immersion problem
solving activity. First, from this problem solving activity in business immersion
author get to know that each human capital management theory related to training
and development. Author has limited knowledge about training and development
program although author has took people in organization and human capital class.
Because of author should solve the problem, author learned more about the theory
and practical with supervision by company’s supervisor.
Another things that be a lesson learned for the author is there are some
rules in the company to make a decision. When author proposed a rules for
internal trainer management, it is not enough and unfinished. Author need learn to
systematize a draft of decree and the draft need to be review by head of
development management, head of human capital division, legal aspect,
compliance and risk management and also by internal control before the draft be
director’s decree.

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Kotler, P. (1997). Marketing management: Analysis, planning, implementation

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Kotler, P. (2000). Marketing management (10th Ed.). Prentice Hall

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Kotler, P. (2003). Marketing management (11th Ed.). Prentice Hall

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