CHAPTER 1 BUSINESS SUMMARY

1.1

Company Background
Sundascape was established in late 2014, with the purpose of providing valuable, unique and

original information on West Javas tourism potential. This information do not have limitation, it
provides information on attractions, places, arts and culture targeting both international and
domestic audiences. Even though Sundascape is relatively new in this business sector, Sundascape
has a progressively attract the enthusiastic visitors to look for information and quality content in
the website (www.sundascape.com).

Figure 1-1 Sundascapes Logo and Partner

Being the official partner of Garuda Indonesia Airlines has enable us to expand audiences
and provide to access the valuable information on the contents that Sundascape share freely. The
collaboration between stakeholders to expose the tourism at West Java to the world is aim to
development of West Java regional area. Whilst, to gain a wider partner, Sundascape not only has
website but also has other social network like Facebook, Google+, Twitter and Instagram.
The contents in Sundascapes website are gradually updated with the help of contributors
which are writers and travelers, website visitors and a team of researchers from Padjajaran
University, Bandung, Indonesia.

1.2

Vision and Mission

Figure 1-2 Vision and Mission

1.3

Organizational Structure

Figure 1 -3 Organizational Structure

In running the business activity, Sundascape divides the organizational structure into four
main division:
a. Marketing Division
This division is responsible for marketing and promoting Sundascape so that people
aware and know about Sundascape. This division also play the important role in presenting
Sundascape to partnership.
b. Design Division
This division is responsible for designing the look of the website and after that will be
issued by Sundascape. This division also responsible for selecting photos that will be
displayed on website so that the information seeks can feel the moment of truth from the
photos.
c. Copywriter Division
This division is responsible for writing an article about tourism in detail and design the
article content. The design is made with the uniqueness and hardly found in other travelers
review in general because the article is a study of the Faculty of Humanities at Padjajaran
University and reviews directly. This make Sundascape has a unique content and an
originality.

d. Operational Division
This division is responsible for daily maintenance of the system as well as designing
website which is integrated with SEO and Google Index.
1.4

Program of Sundascape
The official account of Sundascape on Instagram held some activities as effort to strengthen

economic and tourism potential in West Java, such as:

a.

Photo of the Day

This program invites all the followers to upload their moments on photos when they are
in a place that potential to be a tourism or a place has been a tourism spot. The objective
of this program is to make the place that never been explore and promoted before will
be easily to search and reach by domestic and foreign tourist.

b.

Love Local
This program is aim to help the business of Small Medium Enterprises (SMEs) on
developing the economy of West Java. Weekly, Sundascape invited all the followers to
promote products or services of SMEs in West Java. Sundascape tell the followers on
social media, especially on Instagram to share the moments in order to provide followers
involvement and creativeness.

c.

Photo Essay
The submitted photos from followers will be selected and chose the best of them. The
chosen one will be published and marketed commercially. This program works by
collaborating with Gramedia which will published the photo essay into the book.
Sundascape itself targeted to make two books in one year.

1.5

Business Issues
Tourism industry could be a way to improve the welfare of the community, like the

economic empowerment of the chain of creative industries. If Indonesia wants to compete with
any other ASEAN countries, Indonesia must have a high commitment on planning and developing
the tourism sustainability.
In reality, Indonesia still unable to compete with Thailand, Singapore and Malaysia in
tourism sector. As known generally, Indonesia has many of tourism spot that supposed to be

competitive advantages compare to those countries. From this, Indonesia should be able to make
and empower the tourism potential such as culture, nature, nautical, culinary, history and the entire
property owned.
The last few years, the tourism sector is at the fourth rank of largest foreign exchange in
2013. The average growth of the national tourism industry reached 9.39%, higher than national
economic growth which reached 5.7% in 2014.

Number of Tourist that Visit West

Java on 2014-2015
25000
20000
15000

21538
16397
14618

16942
14725
13631

10648

10000
5000

16644
15086
1413215086
10373

6241

Figure1-4 Number of Tourists Visit West Java

Based on the information, the number of visits and growth of national tourism industry has
not given the significant impact to West Java. There are still a lot of potential tourism area that
have not been explored and exposed. Indonesia should be able to take the advantage of area that
has not been explore, exposed and also has a great potential tourism.
For the past time, Indonesia only concentrated on the area that has become the iconic place
of Indonesia tourism in Internationally known such as Jakarta, Bandung, Jogjakarta, Medan,
Makassar and Manado.
In this case, West Java, has a gap between information seekers and number of tourist that
visit West Java. This is actually one of the problem that occurred. This gap happens because the
lack of information about the area that will be visited by tourist or the using of language that cannot
be understand by tourist when looking for the information.

CHAPTER 2 EXTERNAL AND INTERNAL ENVIRONMENT

2.1

External Environment
External environment of Sundascape can be analyze with PEST Analysis, Porters Five

Forces and Competitor Analysis.

2.1.1 PEST Analysis
2.1.1.1 Political
Every country has a political policy, one of the policy makes country interweave with
other countries. In this situation, the relationship that exist about terms in tourism. The terms can
affect and control the tourism. In Indonesia, tourism is the states largest revenue. With the tourism
term, it will forestall the undesirable phenomenon and balance the political situation between each
country also the stability in Indonesia.
Tourist behavior needs to be a concern for developing business strategy. From political
side that has law and policy, this concerns bounded by Law No. 22 of 1999 on Regional
Government, the authority to develop tourism in respective regions. Each regions can promote its
own territory to become an excellence destination for tourism. State of tourism in Indonesia affect
the hotel business.
In order by connecting the tourism with policy, the government take a precaution step
like:
1. Political Culture
Political culture is associated with tourism industry in purpose to give protection,
maintenance, guidance and encouragement to the wealth of cultural and artistic
creativity of national result.
2. Social Politics
Social politics in relation to tourism is aim to measures reality of the rules and
circumstances that are directed to social improvement for the working people. This
includes working hours, salary, health insurance, old age insurance, the right vacation
and acquire recreation and terms.

3. Domestic Politics
Domestic politics mainly in relation to domestic politics of a government seen from the
eyes of tourism. The existence of laws and regulations used to ensure the growth of
industry and the security of tourists movement.
4. Foreign Policy
Lashings of tourist that come to Indonesia need a foreign policy, in relation with
Indonesia government. The terms not only for economic but also political and cultural
which give positive contribution to the mutual understanding and cooperation for
stability. There are two alternatives in foreign policy, politically friendly or hostile to
the politics of other countries, especially neighboring countries of which can actually be
expected to visit the friendship between the people neighboring countries (Nyoman,
1990).
2.1.1.2 Economic
The latest annual research of World Travel and Tourism Council (WTTC) in 2014, shows
the Travel & Tourisms contribution to world GDP grew for the fifth consecutive year 2014. Rising
to a total of 9.8% of world Gross Domestic Product (GDP) as much as US$7.6 trillion. The sector
now supports nearly 277 million people in employment.
2.1.1.3 Social
Nowadays, people using their gadget to help in the daily activity. This give affect in the
behavioral of life style and the need in life. In general, people use gadget to enrich friend by making
connection from social media. Gadget itself can help people to easily get the information. The
phenomenon of changing behavioral where people who has the birth of year between 1980s
2000s clearly see as the millennial generation (Gen Y).
The fundamental behavior of millennial generation accentuate the information in every
things of their activity. Based on Crowd DNAs research, Indonesia divide in three circle:
1. Hyper Connected
Gen Y circle between the ages of 13-15 years. This circle has trends on social media
and uses technology to connect family.
2. Architects
Gen Y circle between the ages of 16-19 years. This circle using technology not only to
connect to family but also to friends whom search something for the education.

3. Explorers
Gen Y circle with ages of 20 years above. This circle using technology to connect with
almost every aspect in life. Exploring everything to help and fulfill needs.
2.1.1.4 Technology
1. Internet Trend

Figure 2-1 Number of Internet User in Indonesia

Internet user in Indonesia has increase from years. The increasing of using internet make
Indonesia as potential e-commerce market. Internet user in Indonesia use internet as
promotion media, seek an information, social media and others. The number of people
in Indonesia that use internet reach 51% from total Indonesian citizen (Daily social,
2015).
According to Strategic Brand Advisor Ooredoos research, 80% of Indonesian people
spend their time two hours a day using gadget, using internet and also have application
for social media. The interesting part according Erik Meijer (2014), 95% of people trust
technology as a fundamental of modern thinking.

2. Social Media Trend

Figure 2-2 Social Media Use in Indonesia

Recently, social media become the needs for people in general. Indonesia is one of the
country which makes social media as lifestyle not need. Indonesian people using social
media to do the activity such as, looking for friend, search information even sell things
online. This behavior opens new opportunities to do e-commerce as a social media trend.

Technology is an overall knowledge of the methods and means to meet human needs.
There are various types of technologies, one of which is the information and
communication technology. Information and communication technology is the
knowledge about the process of making, processing, storage, and dissemination of
information. Development of information and communication technology aims to
facilitate the whole process of information management, such as speeding up the process
of dissemination of information, expanding the scope of dissemination of information,
and extend the period of storage of information.

The utilization of information and communication technology is strongly recommended

in efforts to develop the tourism sector in West Java. The application of information
technology can help the attractions promotional activities, can also facilitate potential

tourists to choose and book a tour package. Ease of access to information and booking
tour package provide considerable added value in the development of the tourism sector.

One of the factors hamper development of tourism sector in West Java is less optimal
management of information to promote the attractions available. In an effort to develop
the tourism sector, things that need to be considered not only on the location, the
uniqueness, beauty, and the large number of attractions, but it is also very important to
pay attention to human resources in managing tourism system includes the management
of tourism information. Potential tourists desperately need clear information about the
place, facilities and infrastructure, as well as the components of attraction, so the quality
of the information would greatly influence their decision in determining the destination
they will visit.

2.1.2 Five Forces of Competition Model

High Potential
Competitor

Low
Bargaining
Power of
Supplier

High
Competitor
from Establish
Firms

High Thread of
Substitute

High
Bargaining
Power of
Customer

Figure 2-3 Five Forces of Competition Model

2.1.2.1 High Potential Competitor

In providing service such as portal of tourism information, there are a few of competitor
that can be a high potential competitor. The competitor are www.EastJava.com,
www.torajabercerita.com,

www.bandungtourism.com,

www.seputar-cirebon.com

and

www.indonesia.travel. Sundascape classified as a new business, like other potential competitor

and other competitor who wants to enter this market, it easy, as long as they have a uniqueness
and obey all the rules, whether national or international law.
2.1.2.2 High Competitor from Establish Firms
Sundascape has two high potential competitor which are www.EastJava.com and
www.indonesia.travel. These two competitor have almost like Sundascape has based website
interface.
2.1.2.3 High Bargaining Power of Customer
Customer of Sundascape is also partner in business. The more Sundascape make a
relationship partner like Garuda Indonesia Airlines and Gramedia, the more Sundascape can get
many user to see the website that Sundascape made.
2.1.2.4 High Thread of Substitute
Substitute of Sundascape are travel agency who also provide information about tourism
and provide the ticketing if tourist want to go to tourism destination.
2.1.2.5 Low Bargaining Power of Supplier
From Sundascape point of view, bargaining of supplies is not a problem because based
on the fact for almost running in one year, there is a lot of enthusiasm from user who share their
experience on Instagram. Another fact that bargaining supplies is not a problem for Sundascape is
from the data that can be accessible from Search Engine Optimization (SEO).

2.1.3 Competitor Analysis

Table 2-1 Competitor Analysis

Competitor
The official tourism of East Java Indonesia,
A tropical Paradise in the World
(www.EastJava.com)
Toraja bercerita Portal Pariwisata Budaya
Toraja (www.torajabercerita.com)
Bandung Tourism Official Website
(www.bandungtourism.com)
Seputar Cirebon: Portal Pariwisata, Seni dan
Budaya Cirebon (www.seputar-cirebon.com)
Pesona Indonesia-Website Resmi Pariwisata
Indonesia dan Informasi Wisata
(www.indonesia.travel)

2.2

Difference
Focus In east Java but not all the
tourism spot

Similarity
Provide with other language
instead of Bahasa

Only use Bahasa in their website

Only use Bahasa in their website
Not provide clearly all the
information
Provide all the tourism information
in Indonesia and also condition of
every city

Using any other social media to

gain user
Provide with other language
instead of Bahasa

Internal Analysis

2.2.1 Segmenting, Targeting, Positioning

1. Segmenting
Market segmentation is the identification of market portion that are different from other
in order to identify the needs and serve better customer/partner.
Table 2-2 Segmenting

Segmentation
Geographic
Psychographic

Criteria
Area
Interest

Demographic

Age
Sex
Social Class

Description
West Java spesifically
Travelling, hangout,
recreation, shopping,
culinary, culture, arts
and science
17-50
Male and Female
All social class

2. Targeting
Sundascape targeting people inside and outside Indonesia who interest in travelling and
exploring new place. It is important for Sundascape to know their target in order to know
what to develop which can delight all the tourists.
3. Positioning
Sundascape offers the uniqueness of its content to make people easily find the
information that they search. Sundascapes positioning until now gives positive result
to Sundascape feedback.

2.2.2 Marketing Mix 7Ps

Product
Phisical
Evidence

Price

Target
Market
Process

Place

People

Promotion

Figure 2-4 Marketing Mix 7Ps

1. Product
Sundascape is a tourism online portal which give information in detail and unique. This
portal is made to be a promotion media in West Java. Sundascape also give opportunity
for user to compete in sharing their moments when visiting tourism spot by join Photo
of the Day program. In this activity Sundascape invites his followers to upload photos
of them when they are in locations in West Java. With the hope of places of tourism
potential in West Java will be easily recognized and the information can reach
domestikdan foreign tourists.

Sundascape has been a platform for Small Media Enterprises (SMEs) in West Java on
Love Local program which can help SMEs to promote their product. Other program is
Photo Essay, this program collect all the photos that has been choose and then make it
into the book with all the information. The photos were chosen best in daily activities
"Photo of the Day" will be recorded later marketed commercially.

2. Price
Price is one of the indicator which affect consumer to use or buy product or service.
Price become the crucial part for product or service provider when they sell to consumer.
Price gives affection to company life cycle.
3. Place
Sundascape is tourism portal which promote the tourism in West Java. The promotion
based online and social media.
4. Promotion
Sundascape attends several social networking sites, such as Facebook, Google+,
Twitter, and Instagram.
5. People
Everyone that related in this business such as, writers, travelers, website visitors, a team
member research from Padjajaran University and also every division in Sundascape.
6. Process
Sundascape uses Search Engine Optimization (SEO) and Search Engine Marketing
(SEM) methods to provide information.
7. Physical Evidence
How convenience and easy to use the online content of Sundascapes review or
information.

2.2.3 Components of Internal Analysis

Figure 2-5 Components of Internal Analysis

1. Resources

Tangible (Financial Resources, Organizational Resources, Physical Resources,

Technological Resources)
Sundascapes technology using integrated Search Engine Optimization (SEO). SEO
help to increase traffic and visibility of all search engine from engine search. Strong
SEO strategy needs optimization from place, planning, effective content of
implementation and also development the authority of specific niche. Sundascape
use SEO to increase traffic also simplify to search. In addition to use SEO,
Sundascape also integrating with Search Engine Marketing (SEM) and Social Media
Marketing (SMM).

As we can see, the current development of internet technology has made a

substantial progress. The worlds population in general use internet technology in
everyday life. Obviously, internet use to search information by using search engine.
SEO will help to optimize website to search a website in search engine. Currently,
online marketing requires high traffic order to boost the number of user in general,
internet marketing requires compelling content, reliable information and easy to
search.

Intangible (Human Resource, Innovative Resources, Customer Reputation, Brand

Power, Quality Product)
In implementing the content, Sundascape do the innovation on delivering
information. Presented information by Sundascape given in detail, begin from
articles about the tourism spot, the language used, operation time of the place, price
range and how to reach these locations as well as the exact position of the location.
Sundascape also show tourism spot based on category: mountains, outdoor
recreation, shop, culinary, city history and cultural. This will allow visitors to
determine and select tourism spot that will be visited. Beside that the content
presented by Sundascape has a unique value and originality, because the content is
presented based on the study of cultural science research team of Padjajaran
University.

2. Capabilities
To increase company capability, company must have three capabilities, such as:

Adaptive Capability
Adaptive capability is the capability to identify and re-respond the opportunity also
allocating resource to marketing activities. Sundascape looks adaptive capabilities
as the opportunity from many people who search information about tourism in
Indonesia. This opportunity makes Sundascape to create a portal of tourism in
purpose to give information about tourism spot in West Java. Portal of this tourism
make tourists easy to search and access the information what they want to search.

Absorptive Capability
Absorptive capability is used to evaluate and use the outside capabilities.
Sundascape works with researchers and Cultural Science of University Padjajaran
as reference in making content. The contribution of outside in purpose to develop
tourism portal by giving information. The information basically based on the
research from reliable sources and absolutely original.

Innovative Capability
Innovative capability is the capability to develop new product or service. Well said,
Sundascape has a program named Photo of the Day. This program makes
customer able to share about tourism spot which they visited. With this program
makes the customer relationship between Sundascape and visitor become close and
called Dulur Sundascape. Other program that Sundascape has Love Local which
is a media promotion for Small Medium Enterprises in West Java. All the program
done in Instagram.

3. Core Competence
Core competence is one thing that important from business. Sundascape has many
resources from various circles and sources whose culture science researchers, University
of Padjadjaran. This is the differences between whole content and the uniqueness which
Sundascape give rather than other competitor in delivering information.

VRIO Framework
Valuable Capability, Sundascape offers more value to user and tourists by many
information that come from trustworthy source. Capability in giving information has

successfully help Sundascape come up with the uniqueness of their business.

Sundascape consistent in their program and making their website valuable for who
use it.
Rarity, Sundascape offers the information with their own uniqueness that no other
competitor use this method. Provided with the IT technology by using Search Engine
Optimization (SEO) and also in cooperate with Garuda Indonesia. Giving the
information in the website by using any other languages. Sundascape make their
customer as their partner.
Inimitability, Sundascape has the main part of business that is hard to imitate.
Sundascape has a unique of organizational culture, interpersonal relationship
between user, partner and also in their organizational structure.
Organized to Capture Value, Sundascape organize its own management system,
processes, policy with government law, organizational structure and culture to be
able to fully realize the potential of its valuable. Sundascape in running their
business also based on law, whether national law or international law. In managing
system, Sundascape periodically maintain their system, in order to give the best
performance to whom who use their website.

Value Chain Analysis

Value chain analysis allows Sundascape to understand the parts of its operation that
create value and those that do not. Understanding the issues is important because
Sundascape ears above average returns only when the value it creates is greater
than the cost incurred to create that value. Value chain also help Sundsacpe to
determine what strategic capabilities in order to make Sundascape be able sustain.

Firm Infrastructure

Margin

Support
Activities

Human Resource Management

Technology Development
Procurement

Operations

Outbound
Logistics

Marketing
and Sales

Service

Margin

Inbound
Logistics

Primary Activities
Figure 2-6 Value Chain Analysis

Firm Infrastructure, since Sundascape based on internet base, Sundascape make

online relationship. Like said, Sundascape has infrastructure that also based on
internet basis, such as do the Search Engine Optimization (SEO) and Search Engine
Marketing (SEM) methods.

Human Resource Management, in Sundascape all the employee has a web-based

training and expert in their field. They have self-service personnel and benefits
administration that can improve the performance.

Technology Development, Sundascape works based on Search Engine

Optimization (SEO) and Search Engine Marketing (SEM) methods, so it will be
perfect if the knowledge of directories accessible from all parts of Sundascape itself
and also to user.

Procurement, in procurement Sundascape need to fulfill any other lingkage from

all of the tourism information. Sundascape website needs to be the internet enabled
demand planning which is easy for user to go to the site of tourism spot by only
seeing from Sundascape website. Sundascape which cooperation with Garuda
Indonesia, make this procurement easier because in Sundascape website, also link
to Garuda Indonesia website to book the airlines to the destination that user wants.

Inbound Logistic, sundascape has a real time integrated scheduling of updating the
new information from tourism information, all the Sundascape program that connect
directly with user and also from all the partners, such as Garuda Indonesia.

Operations, the integrated information and source from user that has been done. All
the data from user has been collected and store in Sundascape database, which will
be generated for further action.

Outbound Logistic, all the user or tourists can access the website easily.
Sundascape also collaborating integration with user to share their moments at the
tourism spot or any other information about the richness of West Java.

Marketing and Sales, Sundascape using Search Engine Marketing (SEM) to do the
marketing system. Sundascape in cooperation with Gramedia also make an
agreement that Gramedia will put banner of Sundascape in every store that their
store, so that many people will see directly and know about Sundscape.
Service, user self services via website and any other intelligent service request that
Sundascape provide. Real time field service access to user account review and
schematic review can also done in Sundascape Instagram and any social media that
Sundscape have.
4. Competitive Advantage
In this line of business that Sundascape in needs something that can make this business
different from any other business that the same as Sundascape. In order to make the
differentiation works perfectly Sundascape use Porters Diamond of National
Advantages.

Firm

Strategy,

Structure

Demand
Condition

Factor
Condition
Related and
Supporting
Industries

Figure 2- 7 Porters Diamond Model

Sundascape use the diamond as a system to know the effect of one point that depends
on others such as government law and any other rivalry and to reinforcing system of
Sundascape to be better than competitor.

The individual points on the diamond and the the diamond as a whole affect four part
that lead to a national comparative advantages. To gain market in this competitive
market, Sundascape also use this method to know their value that can create the
uniqueness and be able to compete. The four parts are:

The availability of resources and skills

Information that firms use to decide which opportunities to pursue with those
resources and skills.

The goals of individuals in companies

The pressure on companies to innovate and invest

Factor Conditions, Indonesia has many of resources, whether a tourism, culinary

or just Small Medium Enterprises (SMEs) that can be potentially become a potential
resources. From Sundascape itself, has many trustworthy source and supported with
great technology.

Demand Condition, a more demanding potential object in West Java leads to

become the advantage for Sundascape. Sundascape willingly to promote the tourism
spot or SMEs. The trend setting local market helps Sundascape to compete with
other competitor.

Related and Supporting Industries, with the local supporting industries,

Sundascape use this opportunity to support their business. Sundascape did do the
relation between any other industry and also government.

Firm Strategy, Structure and Rivalry, local rivalry forces Sundascape to move
beyond basic advantages that user or tourists may enjoy the tourism with the
information that Sundascape give.

2.2.4 SWOT and TOWS Analysis

Table 2-3 SWOT and TOWS Analysis

STRENGTH

INTERNAL

EXTERNAL

In cooperate with big company

Easy design interface
Updated information
Storage of many information of
West Java

WEAKNESS

Management system is still

lacking
Data record of financial still
simple

STRENGTH OPPORTUNITIES

WEAKNESS OPPORTUNITIES

In order to establish
collaboration, Sundascape needs
to develop their management
system
Sundascape needs to have
financial record to gain trust from
partner

OPPORTUNITIES

Opportunity to expand
the business not only at
West Java
Easy to establish
collaboration

THREATS

Has 2 strong competitor

Easy to join in type of
business

Easy to make more establish

collaboration with big company
and also SMEs in West Java
Many information can be used to
expand the business

STRENGTH THREAT

WEAKNESS THREAT

Has strong competitor makes

Sundascape more creative to
develop business line.

Sundascape needs to upgrade and

develop the management system
in order to compete with rivalry

2.2.5 Quantification of SWOT and TOWS Analysis

2.2.5.1 Internal Factor (Strength and Weakness)
Table 2-4 Internal Factors

Internal Factors
Strength
In cooperate with big
company

Weight

Rating

Weighted Score

72

Easy design interface

72

Updated information

72

Storage of many
information of West
Java

64

280

TOTAL
Weakness
Management system is
still lacking
Data record of financial
still simple

48

35

83

TOTAL

2.2.5.2 External Factor (Opportunity and Thread)

Table 2-5 External Factors

External Factors
Opportunity
Opportunity to expand
the business not only at
West Java
Easy to establish
collaboration

Weight

Rating

Weighted Score

64

64
128

TOTAL
Threats
Has 2 strong competitor
Easy to join in type of
business

64

49

TOTAL

113

2.2.6 Position of the Company

Based on the result of SWOT quantification, Strength 280; Weakness 83; Opportunity
128; Threats 113.
Internal Analysis, internal analysis coordinates = total score strength total score weakness
AXIS X = 280 83 = 197
External Analysis, external analysis coordinates = total score opportunity total score threat
AXIS Y = 128 113 = 15
Sundascape coordinates (197, 15)
Opportunity

II

Stability

Growth

Strength

Weakness
III

IV

Restructuring

Diversification

Threat
Figure 2-8 Position of the Company

Quadrant 1

: Growth (Strength and Opportunities are dominant)

Quadrant 2

: Stability (Weakness and Opportunities are dominant)

Quadrant 3

: Restructuring (Weakness and Threat are dominant)

Quadrant 4

: diversification (Threat and Opportunities are dominant)

CHAPTER 3 GENERIC STRATEGY

3.1

Business Level Strategy

Business level strategy is an integrated and coordinated set of commitments and actions the

firm uses to gain a competitive advantages by exploiting core competence in specific product
markets. Business level strategy indicates the choice the firm has made about how intends to
compete individual product markets. Every business must form and use a business level strategy.
Sundascape use a diversified strategy that use one of the corporate level strategies as well as
separate business level strategy for each product market area in which it competes.
Basic types of business level strategy are cost leadership and differentiation. Generic
strategies include overall cost leadership, differentiation and focus. Generally firms pursue only
one of the above. If firms try to maintain cost leadership as well as differentiation at the same time,
they may fail to achieve either.
Sundascape use the differentiation business level strategy for business, Sundascape has the
uniqueness of their service such as easy to access, reliable and also attractive. This strategy need
the development of service that really offers uniqueness of Sundascape offering that gives value
to user and then user will receive the benefit of using Sundascape service.
This strategy is also integrated set of actions that taken to produce goods or service that user
perceive as being different in ways that are important. The uniqueness that Sundascape has become
the value added that may be make this business to charge a little bit different with any other
competitor. Sundascape wants many user that join their program and also visit their website in
order to see information for travelling.
In order to gain the effectiveness of this strategy, Sundascape needs to develop internal
strength such as, increase the creativeness in running their program and also making website more
attractive so people interest to open it, make collaboration with parties that has strong influence in
tourism side, try to develop the uniqueness of Sundascape so that cannot be easy for competitor to
compete.
From the suggestion above, we can see that it is not easy to create or even maintain the
sustainability in one business. One business need to do the continuously maintenance of the value
added that they have. Sundascape itself be able to make their position and compete with strong
competitor even make collaboration with one big company like Garuda Indonesia.

This business level strategy gives the opportunity for business, in line with it also there is
risk. The risk may be the opportunity for competitor because if they see that Sundascape strategy
more useful they will try to imitate. Sundascape has the lack of management system, so if
Sundascape wants to compete, they should manage their management system.

3.2

Functional Strategy
Table 3-1 Functional Strategy

Variable
Marketing

Design

Copywriter

Operations

Quality
Provides accurate
assessment of customers
product preferences to
R&D
Continuously improve
the design and update
the website
Selecting all photos from
user
Writing an article about a
tourist in detail and design
the article content
Maintenance of system

Efficiency
Using of website and join all
the program

Delivery
Gain the user to use the
website and interact
directly

Attractive website and

choose the best photo that
will be publish

Easy to search
information form the
website

Effective in selecting the

best review from user to be
publish publically
Simplifies the interface of
the website

Give the best photo and

review
Easy to use by user and
attractive

CHAPTER 4 BUSINESS MODEL

4.1

Key Activities

4.1.1 Photo of the Day

This program invites all the followers to upload their moments on photos when they are in
a place that potential to be a tourism or a place has been a tourism spot. The objective of this
program is to make the place that never been explore and promoted before will be easily to search
and reach by domestic and foreign tourist.
4.1.2 Love Local
This program is aim to help the business of Small Medium Enterprises (SMEs) on
developing the economy of West Java. Weekly, Sundascape invited all the followers to promote
products or services of SMEs in West Java. Sundascape tell the followers on social media,
especially on Instagram to share the moments in order to provide followers involvement and
creativeness.
4.1.3 Photo Essay
The submitted photos from followers will be selected and chose the best of them. The
chosen one will be published and marketed commercially. This program works by collaborating
with Gramedia which will published the photo essay into the book. Sundascape itself targeted to
make two books in one year.

4.2

Business Canvas Analysis

Photo of the day

Best of Photo
Love Local

Garuda
Indonesia
Gramedia

Memaparkan
artikel mengenai
tempat wisata
secara transparan
dan detail

Memberikan
informasi mengenai
pariwisata Jawa
Barat secara detail

Fakultas Ilmu
Budaya
UNPAD

Website
Social Media

Server
Bandwith

Traffic

Review

SEM

Advertise

Figure 4-1 Business Canvas

Wisatawan
lokal dan
mancanegara
UMKM Jawa
Barat

4.3

Key Performance Indicator

Table 4-1 Key Performance Indicator

Perspective

Objectives

Measures

Profitability

Revenue

Delight the partner

Gain partner trustworthy

Quality outcome

Good program and give best High

information Make more fun program so
service
supply from user
that many user will join that
program

Internal Business Operational

Process
Learning
and Human
Competencies
Growth

Increase
share
Increase
margin

Initiatives

Net Operating Income

Financial

Customer
(Partner)

Target

Revenue Growth

Increase
partnership

market Decrease cash expenses

profit Improving all the asset and
make into revenue
more Make a reliable
report, trustworthy

financial

Internal activities such as High user that visited Continuously maintain the
maintenance website
the website
website so that user easy to use
Capital Result
of
relationship

employee Employee
comfortable
working

more Company culture that has no

in gap and no strict rules between
each position

CHAPTER 5 FINANCIAL PERFORMANCE

5.1

Financial Analysis
Table 5-1 Financial Report Sundascape in 2015
Period

2015

Revenue
Advertising
Book Publisher
SEM
Total Revenue

Rp213,800,000
Rp27,500,000
Rp19,800,000
Rp261,100,000

Operating Cost
Domain
Server
Labor
Total

Rp157,000
Rp8,400,000
Rp175,000,000
Rp183,557,000

Net Income
Net Income After Tax (25%)

Rp77,543,000
Rp58,157,250

Sundascape run this business since 2014 and still using simple financial report because
Sundascape does not have finance division to run this situation. Although Sundascape does not
have specific division to run this part, Sundascape did manage the financial report in very simple
way.
As we can see from financial report, Sundascape gain total revenue fpr Rp261,100,000 and
total net income after tax for Rp58,157,250 (with the assumption paying tax for 25%). For star up business, Sundascape did manage their business in good way. Sundascape get a lot of revenue
because they can make a good partnership with one of the big airline company, Garuda Indonesia,
also do the partnership with Gramedia which publish their book.
How Sundascape can gain a lot of revenue from website is by calculate how many times
people search Sundascape in website and click their website for search information, this method
called pay per click.

5.2

Financial Projection
Table 5-2 Financial Projection

Period

Debt
Equity
Interest loan
Interest rate
(Bank
Indonesia)
WACC
Period
Total
Invested
Capital
Net
operating
profit after
tax (assume)
Return on
Net Assets
Economic
Value Added

2015

2016

2017

2018

2019

2020

0
100%
12%
7.50%

0
100%
12%
7.58%

0
100%
12%
7.65%

0
100%
12%
7.73%

0
100%
12%
7.80%

0
100%
12%
7.88%

7.50%

7.58%

7.65%

7.73%

7.80%

7.88%

2015

2016

2017

2018

2019

2020

Rp185,000,000 Rp197,950,000 Rp211,806,500 Rp226,632,955 Rp242,497,262 Rp259,472,070

Rp58,157,250

Rp66,880,838

Rp76,912,963

Rp88,449,908

31%

34%

36%

39%

42%

45%

Rp44,282,250

Rp51,886,125

Rp60,708,177

Rp70,937,396

Rp82,791,622

Rp96,521,921

With the assumption :

Invested capital growth: 7%
Growth in interest rate of Bank Indonesia: 1%

Rp101,717,394 Rp116,975,003

5.3

Economic Value Added Valuation

Table 5-3 Economic Value Added Valuation

Period
2015

2016

2017

2018

2019

2020

Advertising

Rp213,800,000

Rp245,870,000

Rp282,750,500

Rp325,163,075

Rp373,937,536

Rp430,028,167

Book Publisher

Rp27,500,000

Rp31,625,000

Rp36,368,750

Rp41,824,063

Rp48,097,672

Rp55,312,323

SEM

Rp19,800,000

Rp22,770,000

Rp26,185,500

Rp30,113,325

Rp34,630,324

Rp39,824,872

Total Revenue

Rp261,100,000

Rp300,265,000

Rp345,304,750

Rp397,100,463

Rp456,665,532

Rp525,165,362

Domain

Rp157,000

Rp180,550

Rp207,633

Rp238,777

Rp274,594

Rp315,783

Server

Rp8,400,000

Rp9,660,000

Rp11,109,000

Rp12,775,350

Rp14,691,653

Rp16,895,400

Labor

Rp175,000,000

Rp201,250,000

Rp306,076,094

Rp351,987,508

Revenue

Operating Cost

Rp183,557,000

Rp211,090,550

Rp231,437,500
Rp242,754,133

Net Income

Rp77,543,000

Rp89,174,450

Rp102,550,618

Rp117,933,210

Rp135,623,192

Rp155,966,670

Net Income
After Tax
(25%)

Rp58,157,250

Rp66,880,838

Rp76,912,963

Rp88,449,908

Rp101,717,394

Rp116,975,003

Total

Rp266,153,125
Rp279,167,252

Rp321,042,340

Rp369,198,691

MM 5012
Business Strategy and Enterprise Modelling
Final Exam Take Home Test

Lecturer :
Harimukti Wandebori, S.T., MBA., Ph.D.

Shinta Asih M Hutasoit

29114419

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2015