Final Project Report - Blue Bird - 2201

Final Project Strategic Management
Case Analysis
By:
Aulia Fadlillah Puteri S - 19017085

Saskia Hana Clarissha - 19017026
Nashrullah Putra Sulaeman- 19017016
Muhammad Vevaldy Yusuf - 19017065
Safira Rahmadani - 19017042
Nadila Isro Fadila - 19017124
Muhamad Yusuf - 19016307
Bandung Institute of Technology

School of Management and Business
2019
Table of Contents
Table of Contents 1
General Overview 3
Company Profile 3
Company History 3
Mission and Vision 3
Current Performance 7
Company Issue 7
Description of Issue Faced by The Company 5
The Impact 6
Level of Strategy Required to Solve The Strategy 7
Owner of The Issue 7
Environmental Scanning (External) 8

PESTEL Analysis 8
Porter’s Five Forces 18
Competitor Analysis 16
External Factor Analysis Summary (EFAS) 18
Environmental Analysis (Internal) 19

Resources and Capability 21
Capability Evaluation based on VRIN 21
Value Chain Analysis 22
Internal Factor Analysis Summary (IFAS) 30
Current Corporate Strategy 30
Current Business Level Strategy 30
Situational Analysis 32
SWOT Analysis 32
Stakeholder Analysis 32
Strategy Formulation 35
Internal-External Matrix 35
External Factor Evaluation 35
Internal Factor Evaluation 36
TOWS Matrix (based on previous analysis; Environmental Scanning) 39
Proposed Strategy 43
Proposed Business Solutions 43
Pro-Cons Analysis from Strategies Proposed 49
Strategic Management - BlueBird Case Analysis | 1

Stakeholder Analysis from The Proposed Strategy 51
Implementation Plan 55
Timeline, Resources and Person in Charge 55

1. General Overview
1.1. Company Profile
1.1.1.1. Company History
PT Blue Bird Tbk or also known as Bluebird is the taxi operator pioneer with the largest
fleet in Indonesia, which includes Jadetabek, Bali, Bandung, Cimahi, Batam, Cilegon, Lombok,
Manado, Medan, Padang, Pekanbaru, Palembang, Semarang, Surabaya, Yogyakarta, Makassar,
and Bangka Belitung, both in business centers as well as in tourist destination.
Bluebird was first established on 29 March 2001 based on Notarial Deed No. 11 of Dian
Pertiwi SH which has been approved by the Minister of Justice of the Republic of Indonesia as
stated in the Decree Letter no. C-00325-HT01.01.TH 2001 dated 26 April 2001.
In line with the development of its business, Bluebird restructured its share ownership in
several land transportation service providers company in 2012. This share ownership
restructuring allows the Company to own 15 Bluebird Subsidiaries that run business in the
passenger transportation and land transportation services, including bus charter, car rental, and
taxi service providers (regular and executive). These Subsidiaries also assists and supports
Bluebird business activities such as workshops and assembly line
1.1.1.2. Mission and Vision
Vision Mission
Becoming a strong and reliable BlueBird mission is to achieve customer

company that prioritizes quality to ensure satisfaction, and to grow and sustain ourselves as
continued prosperity for the market leaders in every category that we go in.
stakeholders. Inland transportation, we proved reliable and
high-quality services with efficient use of
resources,and we do it as a whole team.
1.2. Current Performance
Looking at its past financial performance, BlueBird net profit has been decreasing from the
previous 5 years as we can see below:

Year Net Income Growth
(In Million Rupiah)
2014 Rp. 734,553 -
2015 Rp. 824,026 12.18%
2016 Rp. 507,281 -38.44%
2017 Rp. 424,864 -16.25%
2018 Rp. 457,302 7.63%
Table 1: BlueBird’s Net Income from 2014 - 2018
Looking at the profitability ratio, this table describes the Return On Equity for PT Blue Bird.
Year Return On Equity (%) Changes
2014 20.74% -
2015 19.36% -1.38%
2016 11.05% -8.31%
2017 8.75% -2.30%
2018 8.82% 0.07%
Table 2: BlueBird’s Return on Equity from 2014 - 2018
One of the goals of a corporation is to maximize the wealth of shareholders. This can be
measured from the stock price every year. Enclosed is the performance of PT Blue Bird's share
price over the past 5 years:
Year Share Price Changes
2014 Rp. 9450 -
2015 Rp. 7100 -24.87%

2016 Rp. 3000 -57.75%
2017 Rp. 3460 15.33%
2018 Rp. 2870 -17,05%
Table 3: BlueBird’s Share Price from 2014 - 2018
Analyzing the share price technically using candlestick charts and trend analysis, there is a clear
downtrend of this company’s stock, can be seen in this chart:
1.3. Company Issue
1. Description of Issue Faced by The Company
Online transportation has become a disruptive business in Indonesia with its new
value proposition for transportation industry. When competing with online taxi, BlueBird
as conventional taxi is lacking in some innovation for their customers as impacted by the
number of customers who moves to online transportation. Online transportation judged
as a more effective and efficient way to move to places. The issue has been justified by
its financial report with a sign of decreased income for 2016 when online transportation
become more popular and started to increase again in 2017 when BlueBird has a

maneuvered strategy to partnering with Go-Jek. However, the financial report shows that
the performance did not last long since their income has decreased again in 2018 and
BlueBird cannot maintain their share price as good as before.
2. The Impact
2.1. For the Driver
The changes started in 2016 when online taxi popularity blow up and it
affected the driver in terms of income. As Kompas reported in March 2016, a
driver of BlueBird told that his income had decreased since the last three months.
Usually, he got Rp1.000.000 a day with profit Rp200.000-Rp300.000 a day but
since BlueBird has to compete with the online taxi, he only got Rp600.000 a day
with profit only Rp100.000 a day. He needs to work hard to gain more compared
to the old days. In response to that, there was a demonstration held by the
conventional taxi driver against online taxi with the argument that online taxi had
stolen their customers. However, since BlueBird started its partnership with Go-
Jek, tirto.id reported that there is a slight change in terms of order intensity. The
driver can also pick up Go-Jek customers with the feature of Go-BlueBird and it
helps them to increase their income.
2.2. For the Company
Since Go-Jek and Grab started to become a trend in Indonesia in 2016,

BlueBird has some problems with its business as impacted in their income; it is
decreased 42.30% in the third quarter in 2016 to Rp360.86 billion as compared to
the same period in the year before. As reported by Kumparan, David Sutyanto as
an analyst from First Asia Capital said that there is a correlation between the
increase popularity for online taxi whether it is direct or indirect. It did not only
impacted BlueBird, but also many other small taxi conventional affected and
some of it already close down their business or alternate their business into
partnering with the online taxi. In 2017, BlueBird try another strategy to keep
their business alive with partnering with Go-Jek for their driver. However, their
financial report told that in 2018 their income has been decreasing again and still,
they cannot maintain their share price as good as before in the price of Rp2.870.

3. Level of Strategy Required to Solve The Strategy
For this business case, the level of strategy that required is business level since
BlueBird has to re-evaluate its business core in order to provide value to its customers
and gain a competitive advantage to compete against online taxi with their initial strategy
of the conventional taxi if they want to survive in the industry.
1.4. Owner of The Issue

From the business case, we can know that the owner of the issue is the director of
commercial operation with the help of other divisions in the company since they need to enhance
their business strategy regarding their product.
2. Environmental Scanning (External)
2.1. PESTEL Analysis

2.1.1. Political
The public transportation industry is currently disrupted by online transportation
services which trend is skyrocketing and highly promoted among society. This digital
industry disruption is also supported to promote Indonesia to be the first digital nation in
Southeast Asia. This is considered a threat for Bluebird if they don’t adapt to the trend
since they are currently surpassed by Gojek and Grab.
Furthermore, the government seemed to show more support towards online
transportation services as it promotes an increase in the economic system. The
established legal regulating transportation services have not been distributed fairly,
taking into account where the law for public transportation including Bluebird is quite
difficult for the bureaucracy and standardized operation itself. There was no specific law
established yet for online transportation. The tax charged is also higher resulting Bluebird
to bear greater amount of expenses which allows the online transportation service to
allocate the money for marketing and development expenses, align with the purpose for
boosting its sales and dominate the market (be the market leader), as they bear lower tax
(for example the vehicle tax is borne by the driver).
However, in several regions in Indonesia, the existence of online transportation
is still rejected by some people, especially in areas that have residents with livelihoods as
drivers of public transportation. this makes it difficult for online transportation to enter
into operation in the area so that other public transportation or preferred local taxi is still
an option.
2.1.2. Economical
Indonesia is the sixteenth largest economy in the world with the gross domestic
product (GDP) of approximately US$ 1 Trillion. Economic growth has been stable over the
past decade, hovering around the 5% level. The economic growth is accompanied by a
modest rate of inflation at 3%. The combination of stable growth and low inflation means
that there is more income available for Indonesian households, which can be seen from
the increase of GDP per capita from US$ 2,254 in 2009 to US$ 3,846 in 2018. The stable
economic environment is conducive for Blue Bird as a company to do business. The rising
level of income has contributed to the expansion of the middle class, which now accounts
for 20% of the population and 43% of household consumption. This trend presents an
opportunity for Blue Bird whose market segment is people in this category. Since
transportation is an important aspect of everyday life and as income rises, people tend to

demand more goods and services such as transportation. This means that if this trend
were to persist, then Blue Bird would have a promising future income.
Fuel prices have been stable in Indonesia. However, Indonesia still relies on
imports to meet the demand for fuel consumption. In 2018, Indonesia imported 49.1
million tonnes of oil and gas products of which 43.5 million tonnes are crude oil and
refined petroleum products. The amount of fuel consumed in 2018 was 75 Kilolitres and
the amount imported was approximately 50.7 Kilolitres, which means that 67% of the fuel
consumed comes from imports. The price of fuel is one of the important factors in Blue
Bird’s cost structure. The condition of stable fuel price is favorable because it gives a
certainty that allows the company to plan its operation in advance. Thus, uncertainty in
future fuel prices would be detrimental to Blue Bird’s operation. Currently, there are two
issues that Blue Bird has to be aware of. First, the recent attacks on Saudi Arabia’s oil
refineries have caused some concerns over the price of oil which may ultimately affect
Blue Bird. Second, because Indonesia still imports two-thirds of its oil supply, the
exchange rate would have quite an impact on domestic fuel prices. Therefore, Blue Bird
should be aware of these issues to avoid unexpected changes and plan in advance.
2.1.3. Societal
Indonesia's high population growth continues to be a huge opportunity to be
converted into a business opportunity. The Number of Indonesian Population Will Reach
its Peak in 2062) The dependency ratio of Indonesia's population this year reaches
45.56%. This means that every 100 people of productive age (labor force) has a
responsibility of 46 unproductive populations (aged 0-14 years plus age 65 years and
over). The higher dependency ratio indicates the heavier burden that must be borne by
the population of productive age to finance the lives of the unproductive population. At
the same time, the level of population mobility is very high. The level of demand for
transportation will be very large and has many potentials.
2.1.4. Technological
The technological environment in Indonesia is one of the macro-environmental
factors that have been changing drastically in the past decade. The rapid adoption of
smartphones as a means of communication is one of the examples, as measured by the
number of smartphone users in Indonesia. The numbers have sharply increased from a
mere 11.7 million in 2011 to 76.6 million smartphones in Indonesia. It is expected that by
2022 the numbers would increase by an additional 13 million. The increase in smartphone
usage is also accompanied by increasing us on the internet. [insert measurement]. These
changes had paved a new way for companies to reach their customers, which is through
their smartphone. This can be done through targeted advertising and mobile application.
Targeted advertising allows the company to reach their customers in a precise manner,
which makes it more efficient while the mobile applications can be used by the customers
to get the products offered by the company. Blue Bird can take advantage of these
technologies to improve their customer reach.
2.1.5. Environmental

With the issue of climate change in circulation, it could become a threat to them
because there is a potential for their market to be captured by public transportation. The
government even has a solution to get people to use public transportation and bicycles.
The strategy of the government in Indonesia to get people to use public transportation or
bicycles is to build good communication with the community and provide knowledge
about the importance of a clean environment for the community. Good communication
can take the form of campaigns and outreach.
2.1.6. Legal
Currently, the regulation related to the online transportation which is disrupting
the whole public transportation industry is stated in Ministry of Transportation
Regulations No. 12/2019 about protecting the safety of the use of motorbikes used for
the benefit of the community. According to the regulations the online transportation is
free to operate under governmental cooperative.
2.2. Porter’s Five Forces

1. Threat of New Entrants
Question Yes No Explanation
1. Do larger firms have a cost or √ In transportation service industry, larger firms

performance advantage in your segment sure have many advantages. Larger firms means
of the industry? more operating units, more customers served,
less delay time, more convenience all leads to
more revenue coming. Larger firms also tends to
be more trusted which very important aspects
in this industry on getting both customers and
potential business partners.
2. Are there any proprietary product √ There is no actual proprietary product in this
differences in your industry? industry except the brand license. In term of the
service offered, there’s none.
3. Are there any establish brand identities √ In the public transportation industry especially
in your industry? taxi, there are already big company that
customers already recognized such as Blue Bird,
Express, and White Horse which has operated
nationally wide.
4. Do your customers incur any significant √ When moving to online taxi services, customers
costs in switching suppliers? have less switching cost since the application is
free and the fare is helped from the discounts
and promotions offered. However customers do

worry about the safety, reliability, and trained
service when moving from conventional taxi
service.
5. Is a lot of capital needed to enter your √ Great amount of capital is required for the taxi
industry? industry in providing various types of
transportation, labor cost including the driver,
maintenance cost, and the taxi fleet.
6. Is serviceable used equipment √ Yes, because any transportation needs to be

expensive? routinely time-based or kilometers-based
serviced. Furthermore, the amount usually takes
up to 1 million and above, multiplied by the
total amount of taxis and other types of
transportation provided by BlueBird Group.
7. Does the new comer in your industry face √ Channel distribution is getting easier to enable
difficulty in accessing distribution newcomer gain access to consumer in this
channel? digital era.
8. Does experience help you continuously √ The BlueBird group has been established since
lower costs? 2001 and has grown into a big company leading
43% of market share which enables the
company to gain lower cost from suppliers.
However, its competitor, ExpressGroup has
successfully provided lower fees to customers .
9. Does the new comer have any problem in √ With the vast development of digital technology
obtaining the necessary skilled people, and its easy accessibility, it is now easier for a
materials, or suppliers? new company to obtain their skilled human
capital, suppliers, and other needs. It’s also
easier for them to approach the company.
10. Does your product or service have any √ Although BlueBird is the pioneer of argometer
proprietary features that give you lower taxi in Indonesia, this feature is used by almost
costs? all other taxis who haven’t adopted the Online
Taxi Rates.
11. Are there any licenses, insurance or √ To be able to run a public transport fleet,
qualifications that are difficult to obtain? licensing that must be obtained from the
government is relatively difficult because it is
under the supervision of DISHUB.
12. Can the newcomer expect strong √ Upon entering the market, new competitors
retaliation on entering the market? may don’t face retaliation in pricing strategy
from industry player since the prices depend on
different distances and travel times for each trip
and the industry has the same base cost for

starting. However, when new comer from online
transportation enter the market, they confronts
the resistance that comes from the driver
community which sparks demonstrations in
several places since the online transportation
disrupts the industry.
2. Bargaining Power of Buyers
Question Yes No Explanation
1. Is there a large number of buyers relative √ Transportation is a daily need for everyone
to the number of firms in the business? therefore it resulting large number of buyers in
the business.
2. Do you have a large number of √ customer needs based on driving distance varies
customers, each with relatively small from short distances to long distances. It can be
purchases? depends on how many people in a group that
need the ride, or can be depends on the luggage
carried at the time.
3. Does the customer face any significant √ When moving to online taxi services, customers
cost in switching supplier? have less switching cost since the application is
free and the fare is helped from the discounts
and promotions offered. However customers do
worry about the safety, reliability, and trained
service when moving from conventional taxi
service.
4. Does the buyer need a lot of important √ In the recent times, customers regularly
information? consider on the price, car capacity, waiting time,
travel time, and the traffic information.
5. Is the buyer aware of the need for √ Yes, they are pretty aware of the need for
additional information? information, coupled with the ease of getting
some of the information right away from the
smartphone
6. Is there anything that prevents your √ It is only possible when customers have their
customers from taking your function in- own transportation.
house?
7. Your customers are not highly sensitive √ Customer is highly sensitive to price and seeking
to price. the lowest price available. Of course with
consideration of value that they got along with

the price.
8. Your product is unique to some degree √ BlueBird has offered various added value
and has accepted branding. compared to its customer by providing
transportation that suits with customer needs.
Example: Lifecare Taxi with special feature
Power Slide Up seat for wheeled chair, eldery
people, and a pregnant woman customer.
9. Your customers business are profitable √ Bluebird’s value rely heavily on customers
business which is best service and customer
acknowledge that.
10. You provide incentives to the decision- √ For its great added value, the buyers could have
makers. great experience among other business
competitors. Furthermore, BlueBird has offered
more promos than before.
3. Threat of Substitutes
Questions Yes No Answer
1. Substitute have performance limitations, which √ Substitute of BlueBird Group ranged from
do not completely offset their lower price, or online taxibike to MRT which has highly
their performance advantage is not justified by developed with technology innovation. But,
their higher price. the manpower might not be reliable as
BlueBird has since BlueBird has conduct high
quality training with etiquette standard.
Moreover, any car used by online taxi is not
routinely maintained and no clear standard
for what it should be to serve the customer.
While for MRT, it has greatly cut the
communication between customers and the
employee (in which not everyone
prefer/perform well activities when the
communication is limited).
2. The customer will incur costs in switching to a √ Customer will incur various costs according
substitute. to the substitute chosen. When switching to
taxibike option, safety and comfortness
should be put as consideration. While when
switching to MRT it will cost mostly on the
easiness and convenience upon accessing the
transportation.
3. Your customer has no real substitute √ Customer actually has a wide range of
options for the substitute of public

transportation, such as GoJek and MRT with
considerable value for each.
4. Your customer is not likely to substitute √ Competitors offer various types of added
value from lower price (in which customers
always seek) to a mass transportation that
enable the customer to travel to their
destination in a shorter duration of time
(MRT).
4. Bargaining Power of Suppliers
1. Your inputs (materials, labor, supplies, √ Basically Bluebird suppliers are car
services, etc.) are standard rather that unique companies. And the car used can be a variety
or differentiated of brands.
2. You can switch between suppliers quickly and √ Basically Bluebird suppliers are car
cheaply. companies. And the car used can be a variety
of brands.
3. Your suppliers would find it difficult to enter √ Entering the transportation industry has been
your business difficult because there are many competitors
4. You can substitute inputs readily. √ Basically Bluebird suppliers are car
companies. And the car used can be a variety
of brands.
5. You have many potential suppliers. √ Basically Bluebird suppliers are car
companies. And the car used can be a variety
of brands.
6. Your business is important to you suppliers √ The main consumers of car companies are
not transportation services
7. Your cost of purchase does not have a √ If the price of the car is more expensive, it is
significant influence on your overall costs. even better because of the potential for more
customers
5. Rivalry Among Competitors

1. The industry is growing rapidly. √ Technology advancement is helpful for the
development of the industry itself by giving
the customers another choice of public
transportation (taxi online and MRT)
2. There are few incumbent competitors. √ There is only Express Group that is considered
as incumbent competitors since it has been
established in 1981 with its lower fare offered
to the customers gaining 30% of the market
share.
3. The industry is not cyclical with intermittent √ The taxi industry is intermittent over-capacity
over-capacity. since the existence of online transportation
but it is not cyclical.
4. The fixed costs of the business are relatively √ Fixed cost of BlueBird covers the fleet and
low portion of total costs. accommodation maintenance, its office
operation in 12l cities in Indonesia.
5. There are significant product differences and √ Of course, with high quality standard of
brand identities among competitors. accommodation and specific feature (Power
Up Seat) enables BlueBird to have brand
identities among competitors. Moreover,
BlueBird now has operated electric car Tesla,
contributing to environmental health.
6. The competitors are diversified rather that √ The current competitor, which is Online Taxi
specialized. provider like Gojek or Grab, have widely
diversified service besides Taxi. Varied from
transport services, delivery services, to other
life necessity services.
7. It would not be hard to get out of this business √ BlueBird has conduct a partnership
because there are no specialized skills and agreement with drivers in operating the
facilities or long-term contract commitments. Group’s fleet which is valid until terminated
by either party. The drivers are regulated to
pay security deposits to the Group which can
be withdrawn a year after the agreement
ends. According to the agreement, specifically
for regular and executive taxi drivers, they
have to deposit the income operation and
bear the compensation for any loss caused by
them.
8. Your customer would incur significant costs in √ When moving to online taxi services,
switching to a competitor. customers have less switching cost since the
application is free and the fare is helped from
the discounts and promotions offered.

However customers do worry about the
safety, reliability, and trained service when
moving from conventional taxi service.
9. Your product is complex and requires a √ It is not complex and customers would
detailed understanding on the part of your actually having it easy by ordering the Blue
customer. Bird taxi by phone or now can do an online
reservation through their website.
10. Your competitor firms are all approximately √ Since the competitors is mainly start-ups with
the same size as yours. half the age of BlueBird, there should be a
difference in firms size.
2.3. Competitor Analysis

1. Go-jek
Go-jek was initially founded in 2010 as a ride-hailing company for
motorcycles. Today, it has transformed into a company which provides a broad
range of services that includes transportation, consumer goods delivery,
payments, and daily needs services. With respect to the transportation industry,
Go-Jek is directly competing with Blue Bird with its car-based ride-hailing service
Go-Car. Go-Car has quickly gained popularity in recent years due to several
reasons. Firstly, it makes the ride calling process convenient for the customers by
using a mobile application that can exactly pinpoint the pickup location and due
to a large amount of Go-Car drivers that are available, Go-Car can pick up its
customers within minutes of ordering. Secondly, it offers cheaper fare compared
to traditional taxis. In addition, it shows the fare before the ride even begins
which gives the customer the extra certainty. Also, with an enormous amount of
funding from many investors, it can afford to run a promotional campaign that
offers very low fares to quickly expand its customer base. Lastly, it added a
payment option for the customer to pay with Go-Jek’s payment platform, Go-Pay.
Go-Pay can be used across all of Go-Jek’s service lines which makes it more likely
for customers that use Go-Jek often to keep a portion of their money as Go-Pay
for the convenience of not hassling with cash when using Go-Jek services such as
Go-Car. The superior value and rapid expansion of Go-Car have superseded the
role of taxis in people’s daily activities, which is a major threat to taxi companies,
including Blue Bird.
2. Taxi Express
Taxi Express is one of the oldest transportation company, which dates
back to 1981. In terms of transportation service provided, Taxi Express is directly
competing head to head with Blue Bird across different customer segments. The
comparison of their services is presented in the table below.

Product Blue Bird Taxi Express
Regular Taxi Blue Bird Taxi Express Regular
Premium and Family Taxi Silver Bird Tiara Express
Bus Big Bird Eagle High Bus
Premium Private Taxi Golden Bird Limousine Express
Although that Blue Bird and Taxi Express offer similar services to Blue
Bird, it is facing major difficulty with the rise of online ride-hailing services and
has performed much worse compared to Blue Bird. The stock price of the
company is one of the obvious indicators. The stock price of both companies has
plummeted in the last five years and although that Blue Bird still retains around
a sixth of its value compared to its all-time high, the stock price of Taxi Express
has been reduced to Rp. 50, which is the lowest price allowed by the regulation.
Many investors are now desperate to recoup some money that they have
invested by selling their shares below Rp. 50 in the negotiated market. With the
given current situation of the company, it is less likely for new investors to step
in and buy the shares. In response, Taxi Express is forced to sell many of its assets,
many of it was cars because it cannot afford to cover its own expenses. Fewer
cars mean less earning capacity and reduced earning capacity means that the
likelihood that it cannot cover its expenses increases. This positive feedback loop
would eventually be detrimental to the company. Generally, the reason why Taxi
Express has fared much worse can be attributed to the lack of responsiveness to
changing market conditions. Firstly, Blue Bird has created a mobile application for
calling a taxi while Taxi Express has not. Even if the disruption caused by online
ride-hailing services never happened, Taxi Express would have lost
competitiveness in convenience to Blue Bird. Blue Bird has also partnered with
Go-Jek as a response to the application’s rising popularity, but Taxi Express has
not. This has made them irrelevant since and contributed to their decline.
Secondly, Taxi Express is less diversified than Blue Bird. Taxi Express only serves
retail customers while Blue Bird has other business units such as Iron Bird logistics
service, heavy equipment and Restu Ibu Karoseri. The lack of diversification
exposes the company to risks that are specific to the industry and this has proven
to be fatal for Taxi Express.

2.4. External Factor Analysis Summary (EFAS)
External Factors Weight Score Weighted Comment

Score
Opportunities
1 Go Public company 0.1 5 0.50 Blue Bird has bigger opportunity and
exposure to gain more investors
through capital market
2 Increasing 0.15 5 0.75 Increasing income means increasing

customer’s income demand that can be exploited by
from time to time Blue Bird
3 Associated with 0.05 4 0.20 Blue Bird could gain easier access
government for more partnership because it has
built trust among society
4 Environmental 0.1 3 0.30 Blue Bird has launched the first

awareness among electric taxi (tesla) that would
society reduce fuel consumption and CO2
emission as well
5 Collaboration with 0.1 4 0.40 Blue Bird has the opportunity to

another business collab with another business
through its popularity in terms of
taxi business
Total Opportunity Score 2.15
Threats
1 Service fraud often 0.05 2 0.10 Word of mouth is still the best
happened creating marketing strategy for business and
uneasiness among it could backfire Blue Bird if the
customer customer feel uneasy
2 Increasing amount 0.1 3 0.30 From increasing income could mean

of private cars increasing private cars existence
since people are capable to buy it
now and could harm Blue Bird
demand
3 Increasing price of 0.1 3 0.30 The increasing fuel price would give
gas fuels a significant impact to the service

price provided but Blue Bird has
come with the tesla alternative
(although there’s only few e-taxi but
it has planned for expanding its
service in the future year)
4 Industry shifts 0.15 4 0.60 Nowadays that online digital

towards online transportation industry has
digital disturbing conventional
transportation transportation and compete them
industry with cheaper price and different
services provided.
5 Lower price 0.1 4 0.40 For the sake of promoting and gain
offered by new customers, online
competitors transportation often provide
unreasonable cheap price for its
services.
Total Threat Score 2.10
Total Score 2.15 + 2.10 = 4.25
3. Environmental Analysis (Internal)
3.1. Resources and Capability

These are the resources and capabilities that the firm has based on the functional
management perspectives.
Resources
Functional
Capabilities
Management Tangible Intangible
Marketing Booth, internet data Consumer research ● Segmenting target market

data, website traffic in building strategy
data, logo, company’s ● SEO
brand name, brand’s ● Offline & online marketing
reputation, network ● Conduct CSR for branding
● Handle customer’s
complaint
Finance Investors, shares price, Goodwill ● Dividend

evidence of ● Salary
transactions, revenues ● Financial report
from services ● Sponsorship of an
performed, bank loans event
● Issuance of shares
Operation Transportation assets Patent, ERP software, ● Build digital application

MyBluebird ● One trip taxi
application, GPS ● Car rental
● Shuttle bus
● Logistic trucking
Human Resources Company’s Company’s values, ● Training

stakeholder Code of ethics, ● Determine SOP for
employee’s skill and each of company’s
knowledge stakeholders
● Workers dismissal
1. Marketing
a. Resources: Interactive booth for occasional needs, internet data for
online marketing, research data to determine appropriate strategy, a
good networking for partnership needs
b. Capabilities: Creates marketing strategy to attract targeted customer--
with several specific segmentation--by utilizing research data and make
an analysis with several tools, building customer loyalty & customer
satisfaction also company’s branding through existing (and improved)
facilities, marketing activities, and solved needs & complaints from
customer, contribute on events that has opportunity in achieving the
marketing goals
2. Finance
a. Resources: Revenues gained from shareholders, services performed, and
bank loans for the company’s operation, goodwill of honesty and
transparency to prevent corruption
b. Capabilities: Allocating revenues gained for every functional
management needs and payment for shareholders interest, create
financial report to be shown to the potential shareholders and the
confidential one for the company
3. Operation
a. Resources : Regular taxi, executive taxi, regular car with a baby seater and
tesla utilization, bus, and cargo truck, ERP software to keep and control
company’s database, MyBlue Bird app for customer online reservation.

b. Capabilities: Create and do R&D regularly for the digital application,
perform services with available resources.
4. Human Resources
a. Resource: Talented drivers, supplier/manufacturer, auditor, director with
each functional management (commercial, finance, and technical
operation), company’s value to be upheld
b. Capability: Conduct training for drivers and each employees to build a
high professionality in which contributes to a customer loyalty,
determine SOP to keep employees’ on track, determine the annual
amount of days off and appropriate payroll for every employees
regarding each job task and position, also firing employees.
3.2. Capability Evaluation based on VRIN
Is it non-
Resources or Is it Is it costly Competitive Performance
Is it rare? substitutabl
Capabilities valuable? to imitate? Consequences Implication
e?
Transportation assets
Sustainable
(variety of options, Above-average
Yes Yes Yes Yes competitive
including Tesla returns
advantage
utilization)
My BlueBird Temporary Average returns

application Yes No Yes Yes competitive to above-average
advantage returns
Brand reputation Sustainable

Above-average
Yes Yes Yes Yes competitive
returns
advantage
Conducting CSR Temporary Average returns

Yes No Yes No competitive to above-average
advantage returns
Solve customer needs

on improving
Temporary Average returns
customer satisfaction
Yes Yes No No competitive to above-average
(baby seater,
advantage returns
providing snacks on
Ramadhan)
Partnership with Yes Yes Yes Yes Sustainable Above-average

online transportation competitive returns
company advantage

Talented drivers Yes Yes/No Yes Yes Temporary Average returns
competitive to above-average
advantage returns
Consumer research Yes Yes Yes Yes Sustainable Above-average

data competitive returns
advantage
3.3. Value Chain Analysis
Supporting Activities Company’s Human Technology Procurement

infrastructure Resource usage
Planning, finance, Employee, Integrated Adding new transportation

car services driver computer assets, recruitment for
network, professional driver
Primary Inbound Logistics Operation Outbound Marketing Services

Activities Logistics and Selling
Transportation SOP for Operator, Brochure, Safety,

assets (car), driver, driver, basecamp, advertising, comfort,
argo system and customer credit, voucher website, speed,
GPS services cleanliness,
shuttle
services
Analysis summary:
Primary activities
1. Inbound logistics
Transportation assets (car) as in service facilities : car that used to operate only for customers’
service facilities.
Bluebird’s driver : for a better service quality, Bluebird’s driver always prepare for a quick services.
Argo system and GPS : Bluebird taxi is always one step ahead for develops its technology and
services for customers.
2. Operations
Reservation system makes it easier for customers to order.
SOP for driver : SOP system helps the driver to understand and have a standardization for better
quality services.
Customer services : customer services having a quick responds to support the customers

3. Outbound logistics
Basecamp : Bluebird taxi’s basecamp available in every Mall, Hotel, and big cities around
Indonesia.
4. Marketing and Selling
Promotion via website or online already has their brand identity. Bluebird become the most well
known taxi in Indonesia and trusted for its comfort and safety.
5. Services
Punctuality, convenience, and safety has become Bluebird’s first priority so that customers would
feel the best services quality among every Bluebird’s driver.
Supporting activities
1. Company’s infrastructure
All of the activities, including financial resources, legal, quality management, car services, and
others are supporting bluebird to develop their company.
2. Human resources
Employee and driver are two key success factors that supporting Bluebird’s activities including
hiring people, development, training, and run the business it self.
3. Technology usage
Involves research and development, creating integrated computers network, proses
mechanisation, as well as other technological advances used to support the value chain activities.
4. Procurement
Adding new transportation assets, do recruitment for professional driver, also the function of
purchasing the raw components as well as other inputs used in the value creating activities.
3.4. Internal Factor Analysis Summary (IFAS)
Internal Factors Weight Score Weighted Comment

Score
Strength
1 Quality standardization of 0.2 4 0.8 Blue Bird has provides

operated vehicle comfortable vehicles
with various options for
customers with
different seats and
luggage capacity
2 Strong brand image 0.05 3 0.15 Blue Bird is known as

top-of-mind of
conventional taxi
3 Availability in malls, hotels, train 0.1 3 0.3 Blue Bird has been

stations, airport, etc. capable to provide
services in several
tourism areas although
it has not reach a big
area of distribution in
Indonesia
4 On-the-spot order 0.1 4 0.4 Blue Bird business core

is picking up customer
right on the spot in
places
5 Loyal customers from various 0.1 4 0.4 Blue Bird has been
corporate partnering with other
business to rent their
car for staff
Total Strength Score 2.05
Weakness
1 Relatively high price 0.1 4 0.4 The amount of Blue Bird

tariff is quite high which
cause only middle to
upper class as the
potential customer
2 Lack of convenience in ordering 0.15 4 0.6 Blue Bird conventional

service call center is not as fast
as other online
transportation system
3 Lack of providing fast and 0.15 2 0.3 Blue Bird system is less
precise service fast than other online
transportation in terms
of online but not for on-
the-spot system
4 Lack of promotion and discount 0.05 4 0.2 Blue Bird has rarely
offer promotions
compared to its
competitor
Total Weakness Score 1.5
Total Score 2.05 + 1.5 = 3.55

3.5. Current Corporate Strategy
Blue Bird focus on giving the best services to its loyal customers to enhances it
profitability growth and sustainability of the business. There are several strategies that
Blue Bird uses, such as:
1. Safe Transportation with Best Services
Bluebird is a reliable taxi service in Indonesia. In each year, Bluebird
receives awards from the Ministry of Transportation and other institutions, as the
provider of safe transportation with the best services. As reported by Kompas in
May 2017, Director of PT BlueBird, Sigit Priawan said that they did not have any
plans to lay off their staff and sell their assets instead they were preparing their
best services.
2. Reliable Information Technology System

Bluebird constantly updates its information technology system that
provides customers with ease and comfort. It is also being said by their director,
Sigit Priawan, that they also focus on becoming high technology based. Through
My Bluebird application, customers are able to enjoy numerous features
including the ability to see available nearby taxis, driver rating system,
advanced booking, and non-cash payment. In addition, My Bluebird app has
added new payment feature, which is Easy Ride, which customers can call
taxis on the streets and pay non cash through My Bluebird application.
3. Product and Service Innovations

Bluebird prioritizes the provision of innovative products and services
to meet customers’ needs. Accordingly, Bluebird enhances its fleet with
Multi Purpose Vehicle (MPV) type taxis with a larger capacity. Bluebird
also provides Fleet Management services that offer a luxurious and comfortable
ride without customers having to think about vehicle maintenance costs,
at the same time having the option to drive the car on his own or to hire
Bluebird’s professional drivers.
In other sides, we can analyze BlueBird’s current corporate strategy through three key
issues: directional strategy, portfolio strategy and parenting strategy.
1. Directional Strategy
If we look closely at Bluebird Holdings Group, there are several business units that
can be described as subsidiaries companies such as Bluebird as the commercial taxi
service, Silverbird as the high-end taxi services, Goldenbird as luxurious car rental, Bigbird

as bus services and Ironbird as logistic services. These subsidiaries companies serve
different types of services as well as different target markets. Regarding the strategic
move from these past five years, Bluebird Group focused on concentric diversification in
order to increase its company’s growth in the industry. This happens since the services of
Bluebird Group provide are related to the same related industry which is transportation
services as mentioned above.
On the other hand, Bluebird Group also improves its performance by using
vertical growth strategy concentration which maximizing its potential with cooperating
and making a strategic partnership with its supplier (vehicle company like Toyota,
Mercedes, Mini Cooper, Volvo, etc), financial institution like Mandiri, and IT companies
like Microsoft for making its application and IT supporting systems also with Telkom to
supporting the IoT system. Bluebird partnered with different types with parties that
support the business value chain so we can call it with quasi-integration. Below are the
examples of the news regarding new strategies that Bluebird implemented.

2. Portfolio Strategy
To assess portfolio strategy, we use BCG matrix to compare each subsidiary in market growth rate
and relative market share.

Looking on the financial review, Blue Bird is categorized as cash cow since it is
considered to generate revenues continuously rather than other business units. From the
matrix above, it could be concluded that My Blue Bird has a higher potential to scoop up
the growing market in this digital era , meaning Blue Bird could escalate its development
and marketing for the application as it would boost up customer’s awareness and the
transaction volume even building up the customer loyalty for the added value of My Blue
Bird. Blue Bird should promote its added value enabling the customer to order for real-
time and/or planning future scheduled order, that other application doesn’t offer. Even
though the customer could do it by phone call, the customer could not track where the
driver is and the customer would have the privacy privilege that others do not offer--
masked numbers--where the customer’s mobile phone number would not be revealed to
the driver when they called.
While the Big Bird and Iron Bird is categorized in Question Marks because it has
low market share while the growth rate is actually high. This indicates the company is
having a problem in this business unit as it generates less money than it costs, but the
business unit in the Question Marks has the potential to be the Stars. Therefore, the

company is recommended to continue its investment in the Question Marks’ business
units as it has a high growth rate.
Meanwhile, the Golden Bird, Silver Bird, and My BlueBird apps are categorized
in the star because it have both high market share and high market growth rate.
3. Parenting Strategy
Based on BlueBird official website, there are 6 subsidiary companies under it. The
companies are Bluebird, Silverbird, Bigbird, Ironbird, Goldenbird, and Go-Bluebird.
a. Subsidiaries Company
1. Silverbird
To meet the market needs for a more exclusive taxi, Blue Bird Group presents
Silver Bird. This type of executive taxi, famous for its black color with its own class which
began operating in 1993. A new meaning in executive transportation. Silver Bird's fleet
currently has 900 units (Mercedes Benz C and E class, Toyota Alphard, Toyota Vellfire and
Toyota Camry). Bluebird uses the driver resources they have to be incorporated into
silverbird drivers. Silverbird's strategy builds synergy with Bluebird because they capture
the premium market from the transportation industry.
2. Goldenbird
Golden Bird offers practicality. We can enjoy the comfort of private driving
without having to bother thinking about regular maintenance and insurance costs. The
Golden Bird has a number of standard and luxury vehicle choices with short and long term
rental systems for various purposes with or without the driver. Golden Bird is ready to
serve every need of customers in Indonesia. Golden Bird is as like silverbird, they capture
other markets (premium transportation) and add luxury vehicle rental products.
3. Bigbird
Big Bird is one of Blue Bird's flagship fleets in the form of buses. Big Bird itself
consists of 3 types, each of which has a difference in terms of passenger capacity. The
type of Big Bird is:
● Alfa = This type of bus is the largest with a passenger capacity of 48 sheets or with
a composition of 2/2 sheets and 2/3 sheets.
● Bravo = This bus type is the middle size with a passenger capacity of 25 people.
● Commuter = Using a type of travel car with a passenger capacity of 14 people.

● Delta = This type of bus uses the smallest size of the elf and cooperates with
international schools with a maximum of 12 passengers.
4. Ironbird
In 1991 when Blue Bird Group entered into logistical services through PT
Angkutan Isiindo Antarmoda and PT Ironbird which served large container and cargo
transportation. In 2002 PT Ironbird Transport was present as a logistics company to meet
customer needs and strengthen the Blue Bird group's business base in logistics services
throughout the country.
5. MyBluebird and Go-Bluebird
MyBluebird is on-time order and tracking of Bluebird services. This app was
created in order to follow the trend of online and digital trend. It focused on giving the
online services that Bluebird never given to its customers. It also gives information about
Bluebird and its promo for the transaction. In additional, GO-JEK Indonesia and Blue Bird
present the Anak Bangsa Collaboration by launching GO-BLUEBIRD at 2017, the provision
of Blue Bird taxi booking services through the GO-JEK application platform. This
collaboration will facilitate the mobility of Blue Bird customers and GO-JEK application
users, especially in five regions in Indonesia: Jabodetabek, Surabaya, Bandung, Medan,
and Semarang.
b. Ashridge Parenting-Fit Matrix:
Ballast Business Heartland Business
- Online taxi service (Go-Bluebird) - Taxi (Bluebird)

- Car Rental (Goldenbird) - Premium Taxi (Silverbird)
- Charter Bus (Big bird)
Alien Business Value Trap Business
- Logistics Transport (Ironbird)
3.6. Current Business Level Strategy
The current business level strategy that BlueBird have right now is business
strategy since they already have collaborating with various partners regarding their

conventional taxi; they are focusing on how do they need to compete with online
transportation using their own assets into a new system with technology based.
Strategy follows structure and the structure follows strategy dynamically. It is

however clear that strategy proclaims a targeted customer base, and asserts the matters
by which the company will seek to differentiate itself. Therefore the structure must
support the strategy for competitiveness to be realized. Overall, structure follows
strategy.
Based on the organizational structure, which is Functional Structure (Stage 2),

the business level strategy used is Differentiation Focus. The annual report itself said that
they tend to focus on the narrow and niche market because they already know that they
are facing an enormous competition with online transportation.
But, if the current organizational structure is functional structure, this strategy

won’t be effectively implemented because the divisional structure can be more
effective as the solutions to tackle the current problem.
The divisional structure offers distinct advantages and disadvantages. Generally

speaking, divisions work best for companies with wide variance in product offerings or
regions of geographic operation. On our case, PT Bluebird has many product offers and
subsidiaries entity. The divisional structure can be useful because it affords the company
greater operational flexibility. In addition, the failure of one division does not directly
threaten the other divisions. In the multidivisional structure, subsidiaries benefit from the
use of the brand and capital of the parent company.

4. Situational Analysis
a. SWOT Analysis
Strength Weakness
a. Quality Standardization of Operated a. Relatively High Price

Vehicle b. Lack of Convenience in Ordering Service
b. Strong Brand Image c. Lack of Providing Fast and Precise Service
c. Availability in Malls, Hotels, Train d. Lack of Promotion and Discount
Stations, Airport, etc.
d. On-the-spot Order
Opportunity Threat
a. Publicly Listed Company a. Service Fraud Often Happened, Creating

b. Increasing Consumer Income from Time Uneasiness Among Customers
to Time b. Increasing Amount of Private Cars
c. Associated with Government c. Increasing Price of Gas Fuels
d. Environmental Awareness among d. Industry Shift Towards Online Digital
Society Transportation Industry
e. Lower Price Offered by Competitors
b. Stakeholder Analysis
Stakeholder Legitimac Power Urgency Opportu Challeng Economi Legal Ethical Philanthr
y nity es c opic
Shareholder
Government
Community
Employee
Partners
Competitor
Customer
Mass Media

Stakeholder Identification Base Stake
Shareholder Economic, Ownership, and Legal Equity of the company that they
relationship. have invested in
Government Legal Economic welfare
Community Social relations, social responsibility Image of the company from

society perspective and society
involvement in the business
Employee Legal and stakeholders that helped Effectivity on company’s

to achieve the company goal. operation
Partners (Suppliers) Economic and Legal Relations Company’s supply chain and
performance
Competitor Economic Company’s market share
Customer Economic Relations. Customer as users of the

product that they offered.
Mass Media Social Relations, Social License. Image of the company from
society’s perspective
Stakeholder’s Potential for Threat to Organization

High Low
Stakeholder Type 4 Stakeholder Type 1
High
Mass Media
Shareholder Customerr
Stakeholder’s
Potential for Competitor
Community
Cooperation Partner
Stakeholder Type 3 Stakeholder Type 2
Low
Governmen Employee

Explaining the diagram, Bluebird’s shareholder has a high potential for both cooperation and
threat since it has a great role in the running of the company. If the company could give the best of
shareholder’s interests, they would be satisfied and invest more. But on the contrary, if the company fail
to meet their interests, it’d turn into a big threat for the company because they could walk out. Therefore,
the best strategy is to conduct a collaborative relationship.
Community has a low threat for the company since it is more like what the company do to the
community (discretionary) and it has a tendency for the customer to have a bigger threat rather than the
community itself. On the other hand, it has a high opportunity since the good image of Bluebird among
the communities’ perspective that would lead them to be the customer. Therefore, the best strategy is to
involve the community to create trust and a good brand image.
Employee has both low level on cooperation and threat for the company since they could not
contribute a great changes to the company (because its hierarchy). Therefore, the best strategy is to
monitor them to avoid any agency theory happened.
The customer has a high potential for cooperation and low potential of threat to the organisation
and therefore the appropriate strategy to adopt is to involve. This is due to the fact that customers will
follow the firm strategy regarding themselves and will complain to the firm if there is any unsuitable act
from the business compared to their interest. The firm will be able to involve customers in their strategy
to give the best services according to what customer wants.
The regulator has a low potential for cooperation and high potential of threat to the organisation
and therefore the appropriate strategy adopts is to defend. This is due to the fact that regulator will rule
the operation of the business without any exception to any firm and will conduct punishment if there are
any of the firm violate the rules. This could make a big enough impact to the firm so the loss will be much
higher to the firm.
Partner has a high potential for both cooperation and potential of threat to the organisation and
therefore the appropriate strategy adopts is to collaborate. This is due to the fact that partner has the
ability to make an action that could contribute positive impression of the firm and will also help running
the business more smoothly to enhance the effectiveness and efficiency of the operation. Therefore, it
will benefit both of the sides.
The mass media has a high potential for both cooperation and potential of threat to the
organisation and therefore the appropriate strategy adopts is to collaborate. This is due to the fact that
mass media tend to exaggerate the situation surrounding the activity of the organisation, whether it is
good or bad. For example, a coverage on how well the company is managed can improve the reputation
of Bluebird and increase the confidence of investors while bad news such as the fraud of Bluebird driver
cause public distrust, even though the number of customers affected and the amount involved may be
insignificant.

5. Strategy Formulation
5.1. Internal-External Matrix
1. External Factor Evaluation
External Factors Weight Score Weighted Comment

Score
Opportunities
1 Go Public company 0.01 4 0.04 Blue Bird has bigger opportunity and
exposure to gain more investors
through capital market
2 Increasing 0.15 4 0,6 Increasing income means increasing

customer’s income demand that can be exploited by
from time to time Blue Bird
3 Associated with 0.05 4 0,2 Blue Bird could gain easier access
government for more partnership because it has
built trust among society
4 Environmental 0.1 3 0.3 Blue Bird has launched the first

awareness among electric taxi (tesla) that would
society reduce fuel consumption and CO2
emission as well
5 Collaboration with 0.1 4 0.40 Blue Bird has the opportunity to

another business collab with another business
through its popularity in terms of
taxi business
Total Opportunity Score 1,54
Threats
1 Service fraud often 0,05 3 0,15 Word of mouth is still the best
happened creating marketing strategy for business and
uneasiness among it could backfire Blue Bird if the
customer customer feel uneasy
2 Increasing amount 0,1 3 0,3 From increasing income could mean

of private cars increasing private cars existence
since people are capable to buy it
now and could harm Blue Bird
demand

3 Increasing price of 0,1 3 0,3 The increasing fuel price would give
gas fuels a significant impact to the service
price provided but Blue Bird has
come with the tesla alternative
(although there’s only few e-taxi but
it has planned for expanding its
service in the future year)
4 Industry shifts 0.15 3 0,45 Nowadays that online digital

towards online transportation industry has
digital disturbing conventional
transportation transportation and compete them
industry with cheaper price and different
services provided.
5 Lower price 0,1 3 0,3 For the sake of promoting and gain
offered by new customers, online
competitors transportation often provide
unreasonable cheap price for its
services.
Total Threats Score 1,5
Total Score 1.00 1,54 + 1,5 = 3,04
2. Internal Factor Evaluation
Internal Factors Weight Score Weighted Comment

Score
Strength
1 Quality standardization of 0.2 4 0.80 Blue Bird has provides

operated vehicle comfortable vehicles with
various options for
customers with different
seats and luggage capacity
2 Strong brand image 0.05 3 0.15 Blue Bird is known as top-

of-mind of conventional
taxi
3 Availability in malls, hotels, 0.1 3 0.30 Blue Bird has been capable
train stations, airport, etc. to provide services in
several tourism areas

although it has not reach a
big area of distribution in
Indonesia
4 On-the-spot order 0.1 4 0.40 Blue Bird business core is

picking up customer right
on the spot in places
5 Loyal customers from 0.1 4 0.40 Blue Bird has been

various corporate partnering with other
business to rent their car
for staff
Total Strength Score 2.05
Weakness
1 Relatively high price 0.1 1 0.10 The amount of Blue Bird

tariff is quite high which
cause only middle to
upper class as the
potential customer
2 Lack of convenience in 0.15 2 0.30 Blue Bird conventional call

ordering service center is not as fast as
other online
transportation system
3 Lack of providing fast and 0.15 2 0.30 Blue Bird system is less
precise service fast than other online
transportation in terms of
online but not for on-the-
spot system
4 Lack of promotion and 0.05 1 0.05 Blue Bird has rarely offer
discount promotions compared to
its competitor
Total Weakness Score 0.75
Total Score 1.00 2,05 + 0,75 = 2,8

3. I-E Matrix
Based on the assessment on external factors and internal factors that we have reassessed, we concluded
that Blue Bird has total IFE weighted score for 2,8 and total EFE weighted score for 3,04. Therefore, Blue
Bird is located at II area which means they are suitable for market penetration, market development,
product development, and also they are compatible to do backward, forward, and Horizontal
Penetration.
The Internal - External (IE)

4 3 2 1
High
I II III
THE EFE
3
TOTAL
Mediu
WEIGHTE IV V VI
D
2
SCORES
Low
VII VIII IX
1
Stron Avera Weak

THE IFE TOTAL WEIGHTED SCORE
From the IE matrix graphed and the alternative solutions proposed, it is concluded that Blue Bird
is at II area. Therefore, the inline strategies proposed by IE matrix are resulting this three prioritized
solutions. The first one, using the current product to enter new market segment or known as market
development. This strategy is implemented by expanding the market channel in which specifically aiming
for new customers in new segments. But, it does not rule out the possibility to target the non-buying
customers in current targeted segment.
While for the utilization of Tesla itself is implemented for the product development considering
there is a threat of increasing gas price. A modification for existing vehicle is needed to improve the
product in which the market seeks. By implementing a new growth strategy, Blue Bird would be one-step-
forward among the competitors.
The last proposed solution is the market penetration by creating diversification on promotions
offered. Its purpose is to capture a sizeable market share of the existing market. It is also used to evaluate
whether the product is doing well in the market or not, for further consideration of innovation. The
promotions offered would then expected to gain more attention from the potential customer. The vertical
or horizontal integration is not included in the alternative solution since it requires a great amount of
funding for acquisition while the funds owned is limited. Therefore, the proposed business solution is
focusing on gaining more revenues at the first place--while implicitly also raising awareness among

potential customers.
b. TOWS Matrix (based on previous analysis; Environmental Scanning)
External Factors / Internal Strengths (S) Weaknesses (W)

Factors
S1 Quality standardization of W1 Relatively high price
operated vehicle W2 Lack of convenience in
S2 Strong brand image ordering service
S3 Availability in malls, hotels, train W3 Lack of providing fast and
stations, airport, etc. precise service
S4 On-the-spot order W4 Lack of promotion and
S5 Loyal customers from various discount
corporate
Opportunities (O) SO Strategies WO Strategies
O1 Go Public company SO1. Maintain and improve the WO1. Contribute more in
O2 Increasing customer’s quality standardization that suits to environmental awareness to
income from time to time customers’ needs (S1, S5, O2) add more values (W1,O2, O4)
O3 Associated with
government SO2. Expand to other market WO2. Creating marketing
O4 Environmental awareness channel with Blue Bird as a big strategy that more focus and
among society quality company to gain customer entering new segmented
` awareness and purchase intention market to increase market
(S2, S3, S4, O1, O3) shares (W1, W4, O3)
Threats (T) ST Strategies WT Strategies
T1 Service fraud often ST1. Improving IT quality and WT1. Improving IT quality
happened creating uneasiness pricing system that could helps and pricing system that could
among customer operational services and marketing helps operational services and
T2 Increasing amount of purposes (S4, S5, T1, T4, T5) marketing purposes (W2, W3,
private cars T1, T4, T5)
T3 Increasing price of gas fuels ST2. Use electric vehicle (Tesla)
T4 Industry shifts towards which could push the expenses for WT2. Maintain customer
online digital transportation gas fuels (S1, T3) loyalty by creating a lot of
industry differentiation promos &
T5 Lower price offered by broadcast more often about
competitors the promos (W4, T2, T5)

Alternative Strategies Explanation
A. Strength-Opportunities: Strength to maximize opportunities
1. SO1. Maintain and improve the quality standardization that suits to customers’ needs.
This strategy is used on one strategy matrix which is Strength-Opportunity Strategy
to handle multiple issue, by maximizing S1 and S5 to seize O2.
The stable economic growth in Indonesia has contributed to the increase in the
amount of GDP per capita over time. It follows that the amount of disposable income
available per person is increasing. Transportation is categorized as a normal goods, which
means that its demand tend to increase as income increases. Moreover, the population of
the middle-income class is also increasing, which means the overall population would want
a higher quality goods and services. Blue Bird has a fleet of vehicles with a variety of seats
capacity and a standardized level of quality. Blue Bird can use this resource to capture the
mentioned opportunity by maintaining the current level of quality whilst improving the
quality of service to fulfill the demand of high quality transportation.
Pros: Build customer loyalty or even attract customers to change their public
transportation reference to use Blue Bird in which a higher revenues gained. Therefore, Blue
Bird would also have a greater profile as a listed company. It is a mutual relationship, with a
greater profile it’d then attract potential investors also.
Cons: Have to keep up with the fast-changing needs of customers which always
require for an improvement from time to time. High cost needed.
2. SO2. Expand to other market channel with Blue Bird as a big quality company to gain
customer awareness and purchase intention.
This alternative strategy is proposed on one strategy matrix which is Strength-

opportunity Strategy to handle multiple issues S2, S3, S4, O1, O3.
This alternative strategy is proposed by combining Blue Bird’s strength to seize the
available opportunities through a wider market channel for potential stakeholders--including
shareholders--to contribute more. Therefore, a stronger awareness would be built and
increase the purchase intention as well. This is not limited to the individual customer who
uses the service, but also the shareholders and third parties who has a working relationship
with BlueBird. If Blue Bird could made them exposed to its powerful strength, they would
get a bigger revenues or even invite more potential investors to contribute in the running of
the business. Moreover, if Blue Bird could maintain and improve its strength, it could
maximize its position for the opportunities that Blue Bird has and build trust among the
stakeholders.
Pros: Increase customer awareness and intention to contribute more, also become
a trustworthy company that creates loyalty among the stakeholders. This way, it could take
advantage of the opportunities for having a great relationship with the government (create
a trustworthy image of the company).
Cons: The high marketing costs incurred might not covered by further revenues

obtained--in which expected as the impact for the expansion of marketing channel
B. Weakness-Opportunities: Minimize weakness by taking advantage of

opportunities
1. WO1. Contribute more in environmental awareness to add more values.
This proposed strategy concern on one strategy matrix which is Weakness-

Opportunity to handle W1, O2, O4 in TOWS analysis.
The concern of environmental awareness has been a recurring theme across many
companies in Indonesia. Many companies have taken steps to become more
environmentally friendly in order to appeal to the notion of environmental consciousness
that has been gaining popularity lately. For example, many restaurants and cafes have
abandoned the use of single use plastic straws and beverage manufacturers have started to
use recycled bottles for their products. Blue Bird can capitalize on this trend by presenting
itself as an environmentally conscious company. One way that it can do this is by operating
a fleet of electric taxis which may significantly reduce the carbon footprint of the company.
In addition, the currently proposed regulation for incentives on electric vehicles will help
Blue Bird to implement this strategy at a large scale.
Pros: In addition to becoming more appealing to the consumers, electric cars run
more efficiently which will help reduce operating costs in the long run. At the same time,
Blue Bird can rejuvenate its aging fleet.
Cons: With the current options of electric cars in Indonesia, this strategy would not
be feasible to implement. However, if the regulation on electric cars incentives were to pass,
then there is a potential to implement this strategy.
2. WO2. Creating marketing strategy that more focus and entering new segmented market
to increase market shares.
This one matrix strategy Weakness-Opportunity is utilized to handle W1- W4, O3.
In this rapid economic condition, Bluebird facing the most well-known online
digital transportation industry which outstanding as their cheaper price and services
differentiation. Those online digital transportation industry has disturbing Bluebird since
they have more competitive advantages at their marketing strategy. Bluebird needs to
proposed alternative strategies that use Bluebird’s weakness and utilizing the opportunity
to come out with alternative solution to creating a marketing strategy based on its
weakness which are higher price and lack of discount promotion with utilize the
opportunities to associate with government then create discount promotion using My
Bluebird application as tools to creating people engagement for using its application and
penetrate My Bluebird application for other markets include outside Javas Island to
increasing its market shares and introducing people to its application as the promotional
discount be communicated.
Pros : by creating promotional discounts, customers would feel attracted to using
My Bluebird application as their transportation option, it’s also become the opportunities
to expand Bluebird’s target market across outside Javas Island and introducing My
Bluebird application to their customers.

Cons : as long as the disruption of online digital transportation increases rapidly
and compete with their prices, My bluebird application would always has to create
innovative marketing strategy besides having promotional discount in their penetration
to the segmented market to increase their market shares.
C. Strength-Threat: Strength to minimize threat
1. ST1. Improving IT quality and pricing strategy that could helps operational service
and marketing purposes
This alternative strategy is proposed on two different strategy matrix which are
Strength-Threat Strategy and Weakness-Threat Strategy to handle multiple issues,
namely S4-S5-T1-T4-T5 and W2-W3-T1-T4-T5. This strategy is proposed for one matrix to
maximize S4, S5 to minimize T1, T4, T5.
By improving IT quality and pricing strategy, it would help Bluebird to gain
customers loyalty as much as they can before online digital transportation entering this
market. Improve its IT quality such as creating a quick order and better services quality
could lead Bluebird to be trusted among loyal customer from various corporate.
Customer's loyalty can be Bluebird’s strength while Bluebird is well-known for their
services quality and minimize the error of services fraud. Improving its pricing strategy
from argometer-based to fixed-rate scheme would also helping Bluebird gaining
customer loyalty for being convenience and fast services. This would also help Bluebird
to gives an image of low price for its service because of the stigma argometer price is
much higher than online transportation fixed-rate.
Pros: it could increase customer loyalty quickly as long as it hits the Bluebird’s
segmented target market perfectly.
Cons: it might be increase customer loyalty, but it won’t attract new customers
as much as online digital transportation services.
2. ST2. Use electric vehicles (Tesla) which could push the expenses for gas fuels
This strategy is proposed for one matrix to maximize S1 in order to minimize T3.
By using Tesla for a high quality operated vehicle, it would solve the threat of increasing
gas price from time to time. Not only that, it would also contribute to saving the
environment from pollution and decrease the number of respiration diseases as an
impact of high pollution. Moreover, right now the awareness of environment and health
issue among the society has increased. If Blue Bird succeed to acquire a great number of
Tesla vehicles, they would be the first pioneer for Tesla Taxi among the competitors.
Therefore, when the customer behavior changes--to eco-friendly transportation--and the
competitors imitate this strategy, Blue Bird has already settled and people tend to trust
BlueBird more since it is the pioneer.
Pros: Would not be affected by the increasing gas price, contribute to reducing
the pollution and health issues. Charging cost is also way lower than the gas price.
Furthermore, the government would definitely support this program since it’d help them
for handling environmental issue that keeps getting worse from time to time--in line with
the increasing number of private cars owned and also it is still a rare phenomenon for the

operation of eco-friendly public transportation, especially taxi. Therefore, there is a
potential for government to promote BlueBird as a great alternative for public
transportation.
Cons: Tesla is expensive and the charging station provided in specific region in
Indonesia is very limited. Blue Bird would experience a big loss at first since it requires a
high cost for the operation of Tesla.
D. Weakness-Threat: Minimize weakness to avoid threat
1. WT2. Maintain customer loyalty by creating a lot of differentiation promos &

broadcast more often about the promos.
This strategy is used to minimize multiple issues such as weakness W4 to avoid

threat T2 and T5. The increasing use of private cars reduced the demand for public
transportation options such as taxis. Other competitors that offer lower prices have been
able to incentivize some of the private car owners to use their service instead. Both of
these factors presents a threat to Blue Bird because it takes some of the customers away
from Blue Bird. One of Blue Bird’s weaknesses is the lack of promotions and discounts.
Blue Bird can minimize their weaknesses in order to avoid the threat from these two
factors. Blue Bird can offer more promotions and discounts to regain some of its lost
customers. One way it can do this effectively is to not face the competitors directly but
specifically targets segments where competitors have less influence. It can use discounts
on its airport taxis to offer lower prices for long distance travel to undercut competitors
that are operating in the same area or it can use it on its corporate clients.
Pros: This strategy would be cost effective to implement because the promotions
only apply to specific segments, which means that it would not incur high costs.
Cons: Promotions can be easily imitated by competitors.
6. Proposed Strategy
6.1. Proposed Business Solutions
1. Expand to other market channel with Blue Bird as a big quality company to gain
customer awareness and purchase intention
For the current situation, the market channel that BlueBird has not been
integrated yet in order to expand to its full strength since the channel they have been
using almost the same as they competitors. There are several market channels that can
be used, such as advertising through billboards, direct channeling, promotion, social
media, distribution, etc. BlueBird need to utilizing omni-channel at its maximum like their
competitor, in fact they need to follow the same tactics as others. Below are examples of
differences in the way Bluebird utilize its Instagram channel compared to Go-Jek. It would
be better if BlueBird could plan their marketing content to be more customer-friendly so
they can reach their target customers more.

Another integration of marketing channel is through advertisement that could
interact with the customer in more friendly way rather than business way like the ads
Go-Jek had below so it has more long term effect than the others. This advertisement
strategy has been proven to have positive impact and integrated with the promotion
that the company has.
In other sides, since BlueBird has already has several strategies in terms of
surviving in the disruptive era such as associated with big companies, the strategies
has not been well known yet to the customer due the lack of maximizing its channel
to the potential customer. In addition, BlueBird has its strength with the big and loyal
driver base and is not fully used the new online application channel they have been
proposed. If all the driver that located around Indonesia can use this channel optimally
and supported by friendly-customer marketing strategy with a lot of partnering,
BlueBird can at least minimize the gap between its competitors.

2. Use electric vehicle which could push the expenses for gas fuels
Rising fuel prices could cause some concern for transportation company such
as Blue Bird because it would mean an increase in its operating cost. Fuel expenses is
one of the major items in Blue Bird’s cost structure. One way Blue Bird can reduce its
expenses on fuel is to switch some of its fleet to electric vehicle as the cost of operating
electric vehicles is lower than gasoline powered vehicle. In order to evaluate the
viability of this business solution, we will analyze the effect of electric vehicle
proportion in the fleet on the amount of expenses for energy.
As a basis for comparison, we will use BYD E6 as the electric car and Toyota
Limo as the gasoline car. Both cars are used because Blue Bird has been operating
these cars. The specifications related to consumptions of each car is summarized
below.
Charging Efficiency 85% Total Blue Bird Fleet (Cars) 23000

BYD E6 Toyota Limo
Distance Travelled 250 Distance Travelled 250
Power Consumption (Km/kW) 5 Fuel Consumption (Km/l) 12
Power Required (kWh/Day) 58.82352941 Fuel Required (l/day) 20.83333333
Electricity Price (Rp/kWh) 1,191 Fuel Price (Rp/l) 8500
Annual Consumption (kWh) 21,471 Annual Consumption (l) 7604.166667
Annual Expense (Rp) Rp25,571,471 Annual Expense (Rp) Rp64,635,417
The BYD E6 consumed 5 kW per kilometer and with a charging efficiency of

5%, it requires 58.8 kWh of power if it were to travel 250 kilometer per day. The price
of electricity under I-4/TT category is Rp1,911/kWh and with an annual consumption
of 21,471 kWh, the annual expense for energy is Rp25,571,471.
The Toyota Limo consumed 12 Litre per kilometer and it requires 20.8 Litre of
fuel if it were to travel 250 kilometer per day. The price of fuel is Rp8,500/Litre and
with an annual consumption of 7604.16 Litre, the annual expense for energy is
Rp64,635,417.
Based on this calculation, an electric taxi costs less to operate. The cost
difference between operating an electric taxi and a gasoline taxi is approximately
Rp39,000,000 per year for one car. The effect of electric vehicle proportion in the fleet
on energy expense is summarized below (Based on Blue Bird’s current fleet of 21,000
cars).

Proportion of
Electric Vehicle Total Annual Energy
to Total Fleet (%) Expense (Rp)
0% Rp1,486,614,583,333
10% Rp1,396,767,507,353
20% Rp1,306,920,431,373
30% Rp1,217,073,355,392
40% Rp1,127,226,279,412
50% Rp1,037,379,203,431
60% Rp947,532,127,451
70% Rp857,685,051,471
80% Rp767,837,975,490
90% Rp677,990,899,510
100% Rp588,143,823,529
As we can see from the figures above, the expenses for energy decreases as
the proportion of electric vehicles increases. For every 2300 gasoline cars replaced
with electric cars, Blue Bird saved Rp 89 Billion in energy expenses annually. This is due
to the fact that the electric vehicle is much more efficient and the per unit energy of
electricity is cheaper compared to gasoline. If Blue Bird were to replace its entire fleet
with electric cars, then its energy expense would only be 40% of the current energy
expense.
One of the factors that could potentially have a significant impact on whether this
strategy would be feasible to implement is the tax regulation of electric vehicle. The
current regulation imposed 50% of import duty, 10% of VAT, 10% of income tax and
15% of VAT for luxury goods (PPnBM).
Although the government has lifted the 15% VAT for luxury goods formerly imposed
on electric cars, the price would still be too high for BlueBird to implement this
strategy.
The benefits of replacing Blue Bird’s fleet with electric vehicle is clear as shown in the
previous paragraph. It would significantly reduce the operating cost of Blue Bird by as
much as 40%. The lower cost allows Blue Bird to be more flexible in its strategy. It can
either generate a higher profitability by maintaining its current market share or it can
use the extra revenue to withstand aggressive pricing from rivals. In a time where the
importance of environmental consciousness is increasing, Blue Bird can present itself
as an environmentally conscious company which means a better customer perception
of the company.
However, there are some drawbacks in implementing this strategy. The first one is the

large amount of financial resources that is required to replace the entire fleet of Blue
Bird. Currently, the BYD E6 is sold at $35,000 or around Rp490,000,000. Replacing the
entire fleet of Blue Bird would require approximately Rp9.8 Trillion. Another drawback
of switching operation into electric vehicle is the need to establish an entirely new
infrastructure to support the operation such as charging stations and maintenance
facility.
3. Optimizing IT system and focusing on the pricing rate system to fixed rate scheme to
make more competing price rate
By switching the pricing rate from using argometer which is identical to
conventional taxi service into a fixed rate scheme like what online taxi service has already
implemented, the pricing will be more competitive among emerging online competitors
who currently dominate the transportation market. Argometer price has been seen as an
inconvenient way to charge a customer since there are several possibilities the charge will
be much higher than the initial price, such as driver who takes a longer way in purpose or
traffic which cost costumer a longer time on the road and money. There is also a chance
of fraud when the argometer is not started at the right base price so customers need to
pay double for that additional amount. With fixed rate system just like online
transportation do, customer will have more time to consider whether or not they would
like take this service. When the price charged is much cheaper and the services
guaranteed, customers will likely choose it. It also helps to give underlying suggestion that
the services is transparent and being trusted by customers. Even though the fixed rate
scheme basically the same as argometer one; charging every km like Rp3,000/km as the
lowest price or Rp6,000/km as the highest price, customer will be helped if the total of
their trip is given in the first place in their application.
Not only it will help application usage when it feels more convenient, it will also

boost transaction for the business if Bluebird can channel it with vigorous marketing
strategy about promo and deals they can get from application when using it. Bluebird is
already popular among people in their thirties since they prefer Bluebird services among
others services but they will be substitutes with millennials generation who prefer
convenience over the name. Therefore, Bluebird also need to focus on newer generation
in order to gain more market share in the future.
4. Maintain customer loyalty by creating a lot of differentiation promos & broadcast

more often about the promos
This market penetration technique is proposed to aim a bigger pie of customers.

The tactics used could be in a form of augmenting promotion with the aim of increasing
sales. Advertising can be a great tool for increasing brand awareness. Therefore,
augmented promotion should be in balance with the exposure of its promotion to the
public. Since it would be such a waste if the exposure itself is not maximized. Blue bird
could cooperate with existing e-payment service which people used to get cashback for
the promotion offered, considering people nowadays tend to be cashless and utilized e-
payment service as their daily needs such as Go-Pay, Ovo, Dana, and LinkAja.
Alternative promotion could be discounted price that is offered for the first order
on each mode of transportation provided (e.g: regular and executive taxi). Therefore,
people could experience the benefits offered for each class in which might affect their
preference for further purchase decision. They might be willing to spend bigger amount
of money if they enjoy the experience given. It is about giving such a “trial” for people to
experience the great values offered by Blue Bird compared to others. Moreover, it is
people’s nature to compare for lower price and quality offered.
Building a working relationship with corporate for promotions could also be made
as one of the considerations. For example, the airline industry. If the customer spends
more than specified amount for the airline tickets, they would get a discounted price for
the taxi/car rental service which the customer could use for the transportation to get to
the airport or even at their destination to go to the desired place, considering people tend
to have a high mobility when they travel between cities while most of them do not own
private cars at the city destination.
Also, a membership promotion or subscription plan could be implemented to
attract customers and therefore increase their loyalty. By scanning the environment, Blue
Bird could improve its promo differentiation. Even they could customize the plan, not only
limited for taxi uses. They could offer the tourism industry about the monthly or annual
plan for the bus or car rental services. It would be better if Blue Bird has the “creatively
visualized report” to show the customer for their journey using Blue Bird. By showing the
journey history--which varies from one customer to another--BlueBird then could link the
appropriate promotion for specific customer. This way, each customer would be targeted
perfectly and they’d be more attracted to subscribe the plan since it is the customized
result with the consideration of their own journey history. Blue Bird has to be able to
show the customer about the benefit for subscribing the plans with such specific uses
behavior compared to further possible expenses incurred with no subscription plans.
Below are the example of journey history report by Go-Jek and subscription plan offered
by Grab.

b. Pro-Cons Analysis from Strategies Proposed
Strategy Pros Cons
Expand to other market ● Good measurability. ● High risk of

channel with Blue Bird as a big The impact of competition with
quality company to gain expanding into digital other business. As
customer awareness and marketing expanding to other
purchase intention communication market channel leads
channel can be easily Blue Bird to compete
measured through with existing
analytics provided by business, Blue Bird
the platform who need to have
provide such services. competitive
advantages in order
● Impactful. The to differentiate their
expansion would marketing effort from
make Blue Bird other business.
create content which
is more tailored to ● Required a lot of cash
their customers, and capital. A larger
which means that it market means a
would be more larger workforce,
relevant to the more supporting
customers and it facilities, equipment,
would be more plan, effort and more
impactful in investment on

delivering the advertising strategies
company message to and others.
either increase
customer awareness
or purchase intention
Use electric vehicle which

could push the expenses for ● Lower operating cost ● Require a large
gas fuels in the long run. Gives amount of financial
the company the resources to
flexibility to either implement.
generate higher
profitability with the ● Need to establish an
current market share entirely new
or regain market infrastructure to
share with a more support the
aggressive pricing. operation of electric
vehicle fleet.
● Enhanced brand
perception through ● Current government
the use of tax regulation on
environmentally electric vehicle would
friendly technology make the purchase of
an electric car fleet
infeasible financially.
Switching the pricing rate ● Price is shown before ● Customer is more

system to fixed rate scheme the trip begins. likely to compare the
to make more competing Therefore, more price rate of Blue Bird
price rate certainty on the part to other competitors.
of the customer ●
when it comes to the
price that they will ● Customer tend to
have to pay for the change in brand
service. consideration and are
not being loyal.
● Less potential for
fraud because the
system is more
transparent on the
route, distance
travelled and price.

Maintain customer loyalty by ● Many consumers ● Cash burnt
creating a lot of interested to use the
differentiation promos & Blue Bird service ● Short term
broadcast more often about which can make Blue promotion might lack
the promos Bird stands out from the stickiness to
the competitors. retain newly acquired
customer.
● The campaign would
have an immediate
impact on sales
c. Stakeholder Analysis from The Proposed Strategy
Strategy 1
Stakeholder Impact
Community More awareness on community and increase

community’s engagement that could lead to
change in brand consideration for Blue Bird as
they have an effective communication and
competitive advantages in their brand by the way
they market their product for the customers.
These things could lead to more spending from
the community around for the business itself that
could increase business’ profit.
Employee As the market growth and expanding, employees

need to be trained and educated to perform
better services for the customer in order to
engage customers for the business, the executive
also need to create more and more creative plans
and strategies to compete with other brands
effectively.
Partners (Suppliers) Supporting parties for integrated an effective

communication such as branding agency, creative
director, content creator, and any other effort
would get the beneficial such as more profit as
BlueBird hire them. However, traditional
marketing such as banner, baliho, and flags also
get the impact.
Competitor Decrease in new customer segments. In a way

that advertising could attract a new customers,
people who are not ‘loyal’ to any product can
easily changed in brand consideration.
Customer As Blue Bird create a creative content in their

advertisement could lead the customer to spread
the advertisement itself via word of mouth,
customers would get an emotional engagement
with the brand and automatically help to market
the brand to other customers to expand brand’s
awareness.
Mass Media Spread the business’ new marketing strategies on

their channel such as website, tv, newspaper, ets
as if the strategies seen to be innovative and
creative one.
Government Government is one of the biggest producers of

data - and one of the few that provide data to the
public free of charge. Governments also control
how organizations may use personal data and
myriad other issues related to data. The question,
then, is not really whether the government
should be involved in the new data market, but
rather how it should be involved.
Strategy 2
Stakeholder Impact
Community Fresh air and other beneficial in environment as

Blue Bird having an electric vehicle that costs less
pollution. Other things such as increase in
spending from community around could also
happen.
Employee Change in vehicle means need a lot of training

and education for the employee as the operating
system is different.
Partners (Suppliers) Spending more cash to several parties who

helped to create these new vehicles from
producing the fleet until operating the system.
Competitor Competitors would feels attacked as if they don’t

provide the same new technologies to their

customers.
Customer Better customer perception in Blue Bird as blue

bird produce a new sustainable fleet for the
environment. It could lead to engage the
customer loyalty
Mass Media Would automatically reported several news as

this was a new innovation for services in
transportation company.
Government the government can be not supportive because

there are no regulations relating to this
technology, for that it must be ensured
beforehand for the government so as not to
become an obstacle
Strategy 3
Stakeholder Impact
Community Bluebird's point of view on this action will bring up

positive stimulus. Therefore, it is hoped that the
community's perception of this action will have a
good impact
Employee this strategy will increase the number of

customers, so the incentives received by taxi
drivers will be even greater. Even though, there’ll
be a socialization needed for drivers who are still
not familiar with the new pricing system.
Partners (Suppliers) This may affect the partnering company who

previously supplying the argometer machine to
lose demand and increase the income for suppliers
who are involved in developing the fixed rate
system.
Competitor Competitor may losing their customers since now

the option will be more varied for customers.
Customer Customers will consider BlueBird more as a

transportation option because fixed rates will
provide more competitive prices among
competitors and more clarity about the costs that
will be incurred by customers during their trip.

Mass Media Since this strategy is a big movements that solves
customer’s pain, Mass media will respond to this
positively.
Government Government won’t affected by this strategy.
Strategy 4
Stakeholder Impact
Community More awareness on community and increase

community’s engagement that could lead to
change in brand consideration for Blue Bird as they
have an effective promotion and competitive
advantages in their brand by the way they create a
strategies to attract customers. These things could
lead to more spending from the community
around for the business itself as they’re having
more promotion and could increase business’
profit.
Employee Required training and education to operate the

new system in order to provide better services for
customers and gain the trust of the parties that
cooperate with Blue Bird.
Partners (Suppliers) Sharing exposure and market by the cooperation

that are being made, also increase revenue stream
together.
Competitor Increase competition and having an attempt to

create a more creative promotional strategies by
one another
Customer Get benefit from the promotional to spend less

money and effective way by being cashless
Mass Media Spread the information about discounts and

promotions to reach a wider audience through
various channels like TV commercials, radio, social
media, website ads, etc.
Government Excessive promotion can damage the market and

reduce or increase price levels. The government
will take a role in making policies that limit the
proportion of promotions from total profits. But at
this time the policy does not yet exist,

opportunities are still large. But, if the strategy
succeed it will increase the total profit which
increases the consumption rate that leads to
growth of nation GDP and economic welfare of the
drivers.
7. Implementation Plan
7.1. Timeline, Resources and Person in Charge
No Strategies Time of Person In Resource Criteria of

Implementatio Charge Required Succession
n
1 Expanding other market Short Term (<1 Chief of Human Increasing

channel with BlueBird as a Year) Marketing Capital, Market share
big quality company to gain continuously by 25%
customer awareness and evaluating
purchase intention the program.
2 Use electric vehicle which Longterm (>5 Chief of Money, Growth the
could push the expenses for Years) & Operation Human net income
gas fuels Continuously Capital. >5%
3 Optimizing IT system and Longterm (>5 Chief of IT System, Increasing

focusing the pricing rate Years) & Technology, Human application
system into fixed rate Continuously Chief of Capital usage rate
scheme to make more Operation, >10%
competing price rate Chief of
Marketing
4 Maintain customer loyalty Short Term Chief of Money, Increasing

by creating a lot of (<1year) and Marketing Creative Market Share
differentiation promos & Immediately Human by 25%
broadcast more often about Capital
the promos

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baru-terbit
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Final Project Report - Blue Bird - 2201

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Final Project Strategic Management

Aulia Fadlillah Puteri S - 19017085

Bandung Institute of Technology

Environmental Scanning (External) 8

Environmental Analysis (Internal) 19

Strategic Management - BlueBird Case Analysis | 1

Strategic Management - BlueBird Case Analysis | 2

1.1. Company Profile

1.1.1.1. Company History

1.1.1.2. Mission and Vision

Becoming a strong and reliable BlueBird mission is to achieve customer

1.2. Current Performance

Strategic Management - BlueBird Case Analysis | 3

2014 Rp. 734,553 -

2015 Rp. 824,026 12.18%

2016 Rp. 507,281 -38.44%

2017 Rp. 424,864 -16.25%

2018 Rp. 457,302 7.63%

Table 1: BlueBird’s Net Income from 2014 - 2018

Year Return On Equity (%) Changes

2015 19.36% -1.38%

2016 11.05% -8.31%

2017 8.75% -2.30%

2018 8.82% 0.07%

Table 2: BlueBird’s Return on Equity from 2014 - 2018

Year Share Price Changes

2014 Rp. 9450 -

2015 Rp. 7100 -24.87%

Strategic Management - BlueBird Case Analysis | 4

2017 Rp. 3460 15.33%

2018 Rp. 2870 -17,05%

Table 3: BlueBird’s Share Price from 2014 - 2018

1.3. Company Issue

1. Description of Issue Faced by The Company

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2.1. For the Driver

2.2. For the Company

Since Go-Jek and Grab started to become a trend in Indonesia in 2016,

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1.4. Owner of The Issue

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2. Environmental Scanning (External)

2.1. PESTEL Analysis

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2.2. Porter’s Five Forces

Question Yes No Explanation

1. Do larger firms have a cost or √ In transportation service industry, larger firms

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6. Is serviceable used equipment √ Yes, because any transportation needs to be

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2. Bargaining Power of Buyers

Question Yes No Explanation

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Questions Yes No Answer

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4. Bargaining Power of Suppliers

Questions Yes No Answer

5. Rivalry Among Competitors

Questions Yes No Answer

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2.3. Competitor Analysis