PROPOSED BUSINESS STRATEGY ADAPTING TO ENVIRONMENTAL CHANGES DUE TO THE PANDEMIC: A CASE STUDY OF MRO COMPANY

Abstract

A company called Indo Aircraft Maintenance (IAM) is occupied in Maintenance, Repair and Overhaul (MRO) which has majority of market share in the domestic area. Previously, in March 2020 large-scale social restrictions (LSSR) has been implemented globally that limits activities affecting the number of airline passengers. IAM had a fragile condition as in 2019 IAM experienced a loss and in 2020 a decrease in revenue happened due to the pandemic. In order to recover, a formulation of a new business strategy is required. Following analysis of environmental condition using Porter's 5 forces, PESTEL, and VRIO tools, strategy formulation was carried out using IFE, EFE, and Internal-External Matrix. The analysis represents, the company is suitable to carried out hold and maintain strategy where market penetration and product development are the alternative strategies. Through the deliberation, market penetration is the right choice to create optimum results. Company business unit should not only focus on aircraft maintenance but other market segment also. Product development is not the main option that needs to be prioritized since it requires new technology capabilities to tapped new customer.