Jurnal Perancangan Sistem Informasi 1-4 (2019)
COMPETITIVE ADVANTAGE of DIGITAL DISRUPTION: BLUEBIRD GROUP
STRATEGIES FOR DIGITAL DISRUPTION ONLINE TAXI
Online transportation technology disruption control Bluebird Group
Aditya Syamsudin A.Md
Universitas Mercubuana
Jakarta, Indonesia
Abstract - At present, the development of online
motorcycle taxis is very rapid. Along with the increasing
activity and transportation needs in all regions, ojek is a
very appropriate choice. The view of the people to choose
the mode of online transportation compared to
conventional is an evaluation of the government. This is
because these online transportation modes have
competitive advantages, including lower costs, product
uniqueness, and a focus on a narrower market share. An
example of this happened to the Blue Bird company, which
had become the top ranked transportation mode which
was disrupted due to the presence of online taxis. In the
end, Blue Bird's management decided to change its
strategy by joining Gojek, one of the biggest online players
in Indonesia in launching and developing the Go-car. This
method is one of Blue Bird's efforts to gain competitive
advantage.
Keywords: Online transportation, competitive advantage,
Blue Bird, Gojek
I. PRELIMINARY
Changes in the transportation model from conventional to
application-based transportation are very popular among the
people and this is a form of social change in society that
requires ease in the use of transportation modes. Changes that
occur in society are normal symptoms. Its influence can
spread rapidly to other parts of the world thanks to the
existence of modern communication (Soekanto 2009: 259).
At present, the development of motorcycle taxis
online is very rapid. Along with the increasing activity and
transportation needs in all regions, ojek is a very appropriate
choice. The view of the people to choose the mode
of online transportation compared to conventional is an
evaluation of the government. So far the government has paid
little attention to the means of transportation used by the
general public. There are still many public transportation
facilities that have escaped the government's attention.
Based on a survey conducted on 5-16 April 2017 through
the Indonesian Consumers Foundation (YLKI) involving
4,668 respondents, the main reason for respondents choosing
to use online transportation was cheap with a percentage of
Anggy Fitria Sari, S.TP, MT
Universitas Mercubuana
Jakarta, Indonesia
84.1%. Other reasons are fast (81.9 %), comfortable (78.8%),
and the last reason is safe (61.4%).
In recent years, competition between online and
conventional motorcycle taxis is increasingly attractive. The
very significant difference between online motorcycle taxis
and conventional motorcycle taxis can determine people's
preferences. There will be a gap social if the government does
not take action should be able to sync between online and
conventional modes of transportation.
II. LITERATURE REVIEW
One of the main requirements for a business in order to
win competition in the industry is ownership of competitive
advantage. Competitive advantage is a position where a
company controls a business competition (Porter, 1998).
According to Pardede (2011) competitive advantage is the
advantage possessed by a company compared to its
competitors in the market.
According to Porter, 3 types of generic strategies in
achieving competitive advantage define them as follows ,
namely:
1. Low Cost Strategy
Low Cost strategy emphasis on producing mass (equal in
every aspect) with the cost per unit is very low. This product
(goods or services) is usually aimed at consumers who are
relatively easily affected by price sensitive or using prices as a
deciding factor. In terms of customer behavior, this type of
strategy is very suitable for customer needs included in the
category of low-involvement behavior, when consumers do
not care much about brand differences, relatively do not need
product differentiation, or if there are a large number of
consumers having significant bargaining power. This strategy
makes the company able to withstand price competition and
even become a market leader in determining prices and
ensuring a high (above average) and stable market profit level
through aggressive methods in cost efficiency and
effectiveness. To be able to run a low cost strategy, a company
must be able to meet the requirements in two fields,
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namely: resources and organization. This strategy is only
possible if it has several advantages in the field of corporate
resources, namely: strong capital, skilled in process
engineering, strict supervision, easy to produce, and low
distribution and promotion costs. Whereas from the field of
organization, companies must have: the ability to control costs
tightly, good control information, target-based incentives
(allocation of results-based incentives).
2. Product Differentiation Strategy
Product Differentiation Strategy, encourages companies to
be able to find their own uniqueness in the target market. The
uniqueness of the products (goods or services) that are
prioritized allows a company to attract as much interest as
possible from its potential consumers. Various ease of
maintenance, additional features, flexibility, comfort and
various other things that are difficult to imitate your opponent
are a few examples of differentiation. This type of strategy is
usually aimed at potential consumers who do not prioritize
prices in making decisions ( price insensitive).
3. Focus
Focus strategies are used to build competitive advantage in
a narrower market segment. This type of strategy is intended
to serve the needs of consumers whose numbers are relatively
small and in making decisions to buy relatively not influenced
by prices. In its implementation, especially in medium and
large scale companies, the focus strategy is integrated with
one of the other two generic strategies, namely low cost
strategies or strategies to differentiate product characteristics .
III. DISCUSSION
A. History of Blue Bird and Online Taxis
Business competition requires to create consumer
purchasing decisions by providing quality products at
competitive prices, and good service is a supporting factor for
the company's success in increasing competitive advantage.
One competitive strategywhich can be applied by companies
in achieving competitive advantage according to Porter
(2007) is a cost advantage and differentiation. The
cost leadership strategy is chosen if the company is ready to
become a low-cost producer in its industry, serves many
industry segments, and has a broad scope. The company will
be the cost leader if it produces the same product with its
competitors with the lowest costs while the differentiation
strategy requires the company to choose attributes that can
distinguish itself from its competitors and the company
provides something for consumers that is not provided by its
competitors.
In addition to increasing competitive advantage,
companies must also take the opportunity to utilize
information technology that is currently developing in
increasing consumer purchasing decisions. The rapid
development of information technology also influences the
business world. The flow of circulation in the business world
is very fast and even has become an urgent interest. By
utilizing information technology, companies can do marketing
using the internet or what is called e-marketing ( electronic
marketing ). This is in line with the results of research by
Mardiani et al (2013) which states that e-marketing has an
effect on purchasing decisions.
Blue Bird was originally a car rental service provider
company that specifically serves foreign journalists and other
customers visiting Jakarta. Blue Bird was established to
provide alternative quality transportation services. Blue Bird
has become the driver of taxi fare based on
the meter system in Indonesia.
Initially, Blue Bird taxis were conventional taxis that were
in great demand by the public, taxis that prioritized more
safety and comfort for each passenger. Quality service is the
goal of Blue Bird. Blue Bird targets middle and upper
consumers such as office workers and tourists. Blue Bird taxi
passengers are not price sensitive, which will not be a
problem.
As technology develops, many online taxi-based
applications have sprung up in several cities. The emergence
of online taxis makes people have many choices to choose the
mode of public transportation that suits their needs. Thus, Blue
Bird experienced a very significant decline in profits.
B. Blue Bird is naturally disrupted against Online Taxis
As described before, Blue Bird had become
a transportation mode of a top ranking for metropolitan
residents of the city. Comfort and safety provided by Blue
Bird attract the upper classes to use the mode of transport, but
unfortunately, high cost make Blue Bird can not be enjoyed by
all people. Until there was a new breakthrough in online taxis,
one of the brands discussed in this journal was Grab.
The development of Grab Business or other online taxis
has continued to erode the profits that Blue Bird has. Blue
Bird's revenue growth last occurred in 2015, when Blue
Bird's revenue rose 15 percent to Rp 5,47 trillion from Rp 4,75
trillion a year earlier. However, in the following year, Blue
Bird's revenue dropped 12% to Rp. 4,79 trillion as the impact
of the mushrooming of taxis online , especially in Jakarta,
Depok, Tangerang, and Bekasi (Jadetabek). (source: tirto.id)
Throughout 2017, Blue Bird again recorded a decline in
revenue. Taxis with the Blue Bird pictorial logo earned
revenues of Rp 4,2 trillion, down 12% from 2016 amounting
to Rp 4,79 trillion. Blue Bird of Jadetabek revenue reached Rp
3,26 trillion, down 10 percent from Rp 3,63 trillion. While
outside income Jadetabek reached Rp 940,31 billion, down
19% from Rp1,15 trillion. ( source : tirto.id)
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In the beginning, Blue Bird actually had its own
application, namely Blue Bird Taxi Mobile Reservation , long
before Grab, Uber, or Gojek was known in the wider
community in Indonesia. However, there are several factors
that trigger a decrease in income at Blue Bird due to the
appearance of Grab or other online taxis.
1. Rates
This far enough tariff difference makes people switch to
online taxis. Blue Bird charges Rp. 6,500 per kilometer. While
Grab charges Rp. 3,500 per kilometer and Uber charges
Rp. 2000 per kilometer. These three services also offer a
minimum rate for each customer who uses the
service. For Blue Bird the minimum cost is higher than
both. For Blue Bird the minimum tariff is IDR 20 thousand,
for Grab a fee of IDR 10,000 and a minimum fee of IDR
3,000. ( source: provider.id)
2. Payment Type
Blue Bird : Cash or Vouchers, Credit or Debit cards
Uber : Cash and Credit Cards
Grab : Cash and e-money (OVO)
C. Blue bird collaborates with online taxis for disrupted
opponents
The decline in net income from Blue Bird taxi group due
to the enormity of the development of online makes the
management of Blue Bird decided to change the
strategy by joining Gojek premises, one of the major players
in Indonesia's largest Online Taxi although actually own
application. Gojek hooks Blue Bird in launching and
developing Gocar in order to compete with other online taxis.
Blue Bird's collaboration with Gojek is Blue
Bird's strategy to survive in the transportation business. It can
be said, bluebird is a transportation company that they can
survive in the era of Digital, if compared with the transport
companies more be small scale, where the company - the
company went bankrupt as a result can not withstand the pace
of digital development of this transport, one of which the
Company Express Transportation.
In the context of collaboration with Go-Jek, there are two
patterns that have been carried out by Blue Bird . First, the
Go-Jek application is provided sub-application Go- Blue
Bird facilitates anyone who wants to order a taxi at Blue
Bird rates (not Go-Jek rates). ( source: swa.co.id)
C. Bluebird developed the My Blue Bird application
In today's digital age, the needs of the community
with smartphones and all practical activities, make Bluebird
management and all activities practical, making Bluebird
management think ahead to develop the Blue Bird Taxi Mobile
Reservation applicationintoMy Blue Bird, perfect the
application to make people feel comfortable using it.
There are also several important points developed as follows:
1. Added digital map system. Where the taxi buyer knows the
position of the driver, and the driver knows the position of
the buyer.
2. Electronic payment letter and assessment of drivers .
3. Add a series of promotions such as discounts
4. Developing promotion of cooperation
with Mastercard . For example, gift tickets to watch the
ball to Europe.
5. Develop a business with Mc Donalds. Both parties agree
that their customers will get a special offer when accessing
the My Blue Bird or McDelivery application online .
6. Add payment system by issuing e-vouchers
7. Collaboration with Traveloka. Blue Bird cooperates with
this travel site as a provider of premium airport
transportation vehicles that can be ordered via the
Traveloka application
According to the simulation calculations presented on
the swa.co.id website, My Blue Bird application , for example,
has been downloaded by around 1 , 5 million users. This
automatically increases the number booking . Then,
collaboration with a number of partners, namely Go-Jek,
Traveloka, McDonald's, and Mastercard, also began to show
results. For example, calculated from a collaboration with Go-
Jek: let's say there are 8,000 Blue Bird taxis that operate on
the Go-Jek platform per day and generate an average income
of Rp 200,000 per driver on an average year of business
collaboration with Gojek ( 365 days) can generate revenue of
IDR 584 billion. This is with assumptions - again the
assumption - the driver who gets a passenger from Go-Jek on
average only gets Rp 200 thousand meter. ( Source: swa.co.id)
IV. CONCLUSION
As explained above, it can be seen that online taxi
development has become a disruption for conventional taxis,
for example a Blue Bird. The presence of online taxis has
made the taxi taxi players tedious. Not a few conventional taxi
companies have closed . This competition also led to the
disruption of Blue Bird against online taxis.
Effect of Online Taxi Distribution : Blue Bird revenue has
decreased by 12% in 2017 . The cause of the decline in profits
of conventional taxis or more precisely Blue Bird is because
online taxis offer lower / cheaper rates , apart from the
affordable price, the application system is also quite simple
and easy, and payment systems can be made with cash / cash ,
credit up to e-money.
Blue Bird efforts in the fight against online taxi disruption
and can survive on competitive taxi to competitive
advantage online transportation are:
1. Joining Online daring for supporting go-car program.
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2. Cooperate together with travel agents and fast food by V. BIBLIOGRAPHY

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