CHAPTER 1

INTRODUCTION

1.1. Background

Manufacturing in Indonesia also contributes quite a lot to the country's economy, where
this contribution reaches 20.5% according to the Ministry of Industry's data in April 2019.
Indonesia is also ranked 5th among other G-20 countries, to be precise after China where the
contribution rate their manufacturing reached 29.3%, then South Korea reached 27.6%,
followed by Japan with 21% and right above US, Germany with 20.7%. The figure owned by
Indonesia is also above the average contribution. the world manufacturing sector, namely
17%.

Figure 1. Kontribusi Manufaktur Terhadap PDB 2019

Source : Kemenperin 2019

The Ministry of Industry is targeting growth in the manufacturing sector of 5.4% in

2019, but only 4.48 - 4.60% will be realized. Entering 2020, the Ministry of Industry is
optimistic that the manufacturing industry will still grow positively despite global
uncertainty. Agus Gumiwang Kartasasmita, Ministry of Industry, projects that manufacturing
growth can reach 4.80 - 5.30%. The target for this increase is in line with the increasing
productivity of a number of sectors through additional investment.

In Indonesia itself, the automotive manufacturing industry is one of the sectors that the
Ministry of Industry focuses on towards "Indonesia 4.0" which will be implemented in the
near future. The automotive sector was chosen because the automotive manufacturing
industry is one of the industries whose growth is quite high, namely 9.49%, of which the
other four are the food, textile, electronics, and chemical sectors.

Seeing the condition of the automotive sector which is bright in the future and has the
potential to increase. This has resulted in greater competitiveness in the Indonesian
automotive industry market. Which requires each of the companies to improve their strategy
in order to continue to compete in the market. The automotive industry itself is broadly
divided into Passanger Car and Commercial Vehicle. In Indonesia, it consists of more than 10
companies that compete with each other to win the market. In Indonesia alone, there are three
companies competing to hold the Indonesian commercial vehicle market with a much higher
number than other companies. The three companies are Mitsubishi Fuso, Hino and Isuzu.
Regarding to passenger car, Special Utiliy Vehicle (SUV) segment is one of the car segments
that nowadays hold a trend.

The prospect of future growth in automotive industry in Indonesia is predicted to be quite

bright. Encouraged by the growth of Indonesia's toll road infrastructure that is increasingly
widespread and also begins to bubble up throughout Indonesia. As well as the government
policy regarding B30 fuel which will later make ground logistics operational costs cheaper.
The two steps from the government are considered to increase the market's desire to use land
transportation options. Which is where it will increase public demand for commercial
vehicles and passenger car. With the increase in demand, the level of competitiveness
between companies will also be stronger.

Competitive advantage increases and maintains market share and achieves market
leadership. And this is important. In the automotive industry, there are six main ways a
company can outperform its competitors, including cost, quality, service, branding,
innovation and convenience. According to Porter, there are three ways to achieve a
competitive advantage, namely cost management, focus and product differentiation. He
believed that managers in the business environment should think about how to enter the
market, and then try to create and maintain a competitive position for him. Discussion of
competitive advantage is traditionally the most important issue in management theory and
strategic management. A competitive business environment has resulted in the complexity
and sophistication of business decision-making which is requires strategic management.
 Strategy analysis can be considered the starting point of the strategic management
process. It consists of the "initial work" that must be done in order for the strategy to be
effectively formulated and implemented. Many strategies fail because managers may want to
formulate and implement strategies without a careful analysis of the organization’s overall
goals and without a thorough analysis of its external and internal environment.

The Voice of the Customer (VOC) is a term used in business to describe the process of taking
customer needs into account. VOC is a product development technique that generates a
detailed set of customer wishes and needs, which are organized into a hierarchical structure
and then given priority in terms of relative importance and satisfaction with current
alternatives. The voice of the customer is important to finally make a greater competition.
Because, knowing customer needs is critical to both product development and marketing.

In the midst of tighter competition driven by manufacturing growth in Indonesia, Isuzu

Indonesia has experienced a decline in sales based on data from Astra's annual report. This
can have an impact on Isuzu in its competitive advantage.

Figure 1.2 Isuzu Sales Data 2019

Source : Astra Annual Report 2019
 Depart from the background above. Therefore this study will discuss Strategy Analysis
and Voice Of Customer To Increase Competitiveness Advantage on the automotive company
PT. Isuzu Astra Motor Indonesia especially in their SUV passenger car which is MUX .

1.2. Research Problem

The formulation of the problem in this study is the needing for a study on the Strategic
Analysis and Voice Of Customer to Increase Competitiveness Advantage in an automotive
company PT. Isuzu Astra Motor Indonesia. In purpose, that can provide an understanding of
the company regarding the strategic in the company. By knowing the strategic analysis of the
company and the voice of customer, the company can take corrective steps to indicators that
are considered less good than other indicators based on research results and the next steps to
improve.

1.3. Problem Relationship Diagram

To give a clear visualization of the course of the problem of this research, starting from
the background of this research to the statement of the goal, the author used a diagram of the
relationship of the problem from the bottom up, as seen in Figure 2.
1.4. Research Objective

Based on the formulation of the problem previously described, the purpose of this study
is to find out strategic analysis and voice of customer to increase competitiveness advantage.
Accordance with the results that obatined, which includes indicators in strategic management
analyzes such as competitive power , market opportunities power and competitiveness
advantage. So that companies can find out what indicators in their company’s strategy needs
to be improved in order to increase the competitiveness of their companies in the market.

1.5. Limitation of Research

Research limitations are set in this study so that research is right on target with existing
problems. These limitations include:
1) Location of the Research
The research was conducted at PT.Isuzu Astra Motor Indonesia.
2) Subject of the Research
The research will be conduct in one of the factory in Jabodetabek that can be
categorized as manufacturing industry. The primary and supporting data will
be gathered from the worker on site.
3) Focus of the Research
The research will focus to find out the Strategic Analysis and Voice Of Customer to
Increase Competitiveness Advantage especially especially in their SUV passenger car MUX .
.
1.6. Research Methodology

The research method chosen is Causal. Which has five stages which include:
1) Finding references and determining research topics
The research begins by looking for reference sources from journals, reports, books, and
scientific articles related to the research topic. Once collected, a discussion is held with the
supervisor to determine topics that can be further researched and developed with the
supervisor.
2) Determine the scope of the methodology
At this stage, the scope is determined as the research boundary, regarding what division
will be selected as the research object.
3) Data Collection
 After determining what scope and division the research object will conduct, the next
stage is collecting data regarding the assessment of the division relating to their strategic for
MUX which is adjusted to the indicators in the Strategic Analysis and the Voice Of
Customer.
The data needed to conduct this research is primary data. Primary data obtained through
analysis of the strategy in the company carried out through discussions with a company's
marketing manager in determining the company's external and internal factors and their
weight values, as basic information in the strategy formulation input stage aand also
questionnaire that will be given to customer. Then, the obtained data from above will be
process.
4) Data Processing and Analysis
Primary data that has been collected is then processed and analyze base on SWOT
analysis using Internal Factor Evaluation (IFE), External Factor Evaluation (EFE), and
Customer Profile Matrix (CPM) of their product unit Isuzu MUX. Regarding to VOC data, a
questionnaire will be given to Customer.
5) Final Stage
The final stage of the research is notification of research results, drawing conclusions,
and providing suggestions.

Figure 2. Research flow

1.7. Writing Systematic

The systematics of writing in this study refers to the standard standards of thesis writing.
This thesis is written in five chapters. A brief presentation that will provide a clear
description of written content related to systematic writing Systematics research writing is
divided into five parts consisting of:
1) CHAPTER 1
This chapter contains the background of the research which is further formulated through
a problem linkage diagram and explains the research objectives. Research limitations were
explained to focus research in accordance with the research methodology.
2) CHAPTER 2
This chapter contains supporting theories related to research as a reference or reference
in conducting research. The supporting theory is mostly related to the automotive industry,
Strategic Management On Competitiveness Advantage.
3) CHAPTER 3
This chapter discusses data processing which consists the data obtained from the SWOT
analysis and questionnaire.
CHAPTER 4
This chapter discusses and analyzes the results of the calculations performed on data
processing in the previous chapter.
4) CHAPTER 5
This chapter is a closing chapter with conclusions and suggestions. The conclusion is the
results of calculations based on existing data which are then known.