Case 1

Borneo Wood (BW) is a premium manufacturer of raw wood materials that is located in Indonesia. Its wood products
are used widely in the furniture and building material industry both inside and outside of Indonesia. It is a well-
established company with a fully developed marketing unit.

However, due to the changing customer perceptions and relationships, the company is facing challenges by newcomer
companies. BW is concerned and wants to change their marketing strategy for the next year to regain its market share.

The company hire a private consultant (which you are part of the employee of the consultant) and asked the consultant
to provide an analysis about what are significant aspects being considered by customer’s likelihood to make future
purchase at Borneo Woods.

The consultant figure out eleven aspects that mostly considered when purchasing a wood products, namely :

1. Product Quality 7. Competitive Pricing

2. E-commerce Activities/ Website 8. Warrant and Claims
3. Technical Support 9. New Product
4. Complaint Resolution 10. Ordering and Billing
5. Advertising 11. Delivery Speed
6. Sales Force Image

The consultant thought that those aspects is still too broad for company strategy to have a competitive edge, hence
they want to simplify it into more manageable component. Further a Factor Analysis is conducted to help to narrow
down the company strategy toward for identify customer’s likelihood for future purchase.

The first result of the analysis is provided below

Figure 1. KMO and Bartlett’s Test Result

Figure 2. Anti-image matrices Result

Question 1 :

Based on the Figure 1 and 2 above, what can you infer about the analysis and is there any concern about the result?

Let say that the analysis is continue and all the concerns has been overcome. The next result can be seen in the
following Figure

Figure 3. Total Variance Explained from Extraction Method

Figure 4. Rotated Component Matrix

Question 2 :

Based on the Figure 3 and 4 above, what can you infer about the result and what do you recommend for the BW to
be able to compete in the new changing market?